Bitcoin News Today: Bitcoin's Bullish Momentum Stalls at Psychological $117K Wall

Bitcoin's price slid below $112,000 in early August, marking a six-week low and signaling a shift in market sentiment following the Federal Reserve's signals of potential rate cuts. The drop came despite initial optimism from a dovish statement by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, which had sparked a surge in Bitcoin prices to over $117,000 the previous week. As traders booked profits, the price consolidated and faced resistance near the $117,000 level, a key psychological threshold [1]. Technical indicators underscored the lack of conviction behind the rally, with the Relative Strength Index hovering near 47, the MACD remaining in negative territory, and the Average Directional Index reflecting weak trend strength [3].

The recent pullback reflects broader macroeconomic and on-chain trends influencing Bitcoin’s trajectory. Institutional buying has sharply declined, dropping from 174,000 BTC in July to just 59,000 BTC in the latest reporting period [3]. Moreover, spot Bitcoin ETF inflows have weakened, reaching their lowest levels since April, while large holders—often referred to as “whales”—have aggressively realized profits, locking in nearly $74 billion in gains since July 4 [3]. These developments coincide with Bitcoin’s retreat from its summer peak of $124,000, raising concerns about the sustainability of the current price action.

Bitcoin’s fee revenue has also declined to levels not seen since 2011, with daily transaction fees averaging just 3.5 BTC on a 14-day basis. This is attributed to reduced speculative usage and a migration of NFT and DeFi activity to other blockchains, such as Ethereum and Solana [3]. For miners, this means a greater reliance on block subsidies as halving events continue to cut rewards, while for users it indicates cheaper transaction costs but also weaker network-driven demand.

The shift in investor capital is also evident in the growing dominance of altcoins, with Bitcoin’s market share declining toward 59 percent. Institutional flows highlight this trend, as crypto funds attracted $3.75 billion last week, with Ethereum capturing 77 percent of that inflow [3]. Whales have also shifted positioning by moving dormant Bitcoin holdings into Ether, aligning with Ethereum’s recent breakout above $4,800.

Looking ahead, Bitcoin’s near-term trajectory will be shaped by key technical levels. Immediate support is currently at $114,000, with a deeper cushion at $111,000 and a structural floor near $105,000 [3]. On the upside, a break above $117,000 is seen as pivotal for confirming bullish momentum, with further targets at $121,000 and $124,500–$127,500 if the rally extends [3]. Analysts caution that the market remains vulnerable to further consolidation, with the balance of evidence favoring a bearish near-term bias.

While U.S. monetary policy and institutional adoption have historically driven Bitcoin’s performance, recent trends suggest that liquidity dynamics in China may also play a growing role. China’s M2 money supply has expanded significantly, reaching ¥6.6 trillion in 2025, and its growth now outpaces that of the U.S. The China-to-U.S. M2 ratio is above 1.8, echoing patterns seen before prior Bitcoin bull cycles [5]. This suggests that China’s monetary expansion could provide a new source of momentum for Bitcoin, particularly if U.S. dollar dominance continues to decline. However, the ultimate trajectory of Bitcoin will depend on a complex interplay of macroeconomic, regulatory, and market sentiment factors.

Source: [1] Bitcoin Price Today Slips Below 113k, Near 6wk Low Despite Fed Cut Bets (https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-slips-below-113k-near-6wk-low-despite-fed-cut-bets-4208087) [2] Eric Trump Makes Bitcoin Price Predictions As He Reportedly Gets Ready to Visit Metaplanet (https://www.coindesk.com/business/2025/08/23/eric-trump-makes-bitcoin-price-predictions-as-he-reportedly-gets-ready-to-visit-metaplanet) [3] Bitcoin Price Forecast: BTC-USD Struggles at 117k USD Resistance While Whales Lock in Profit (https://www.tradingnews.com/news/bitcoin-price-forecast-btc-usd-struggles-at-117k-usd-ressitance-whule-whales-lock-in-profit) [4] Bitcoin Price to USD: China's Export Boom Could Trigger Massive Rally (https://thetradable.com/global-economy/bitcoin-price-to-usd-chinas-export-boom-could-trigger-massive-rally-3--v) [5] Bitcoin Price Momentum Could Be Tied to China, But Will Markets Follow Through? (https://www.thecoinrepublic.com/2025/08/23/bitcoin-price-momentum-could-be-tied-to-china-but-will-markets-follow-through/) [6] 1 BTC to CNY - Convert Bitcoins to Chinese Yuan Renminbi (https://www.xe.com/currencyconverter/convert/?Amount=1&From=BTC&To=CNY)