Bitcoin News Today: Bitcoin Falls Below Key Support as Short-Term Holder Profits Drop to 70% and ETFs See Largest Outflow in 14 Months

Glassnode's latest On-chain Weekly Report highlights a pivotal phase in the Bitcoin market, where the price has retreated below key support levels following a brief all-time high of $123,000 in mid-July. The price has since consolidated and dropped below the supply-dense area of around $116,000, with a further breakdown observed on July 31 below the lower boundary of this range, entering a liquidity-thin "air gap" that extends to $110,000. While some short-term buyers have entered the market, the price remains unable to reclaim critical resistance levels [1].

The report notes a significant decline in the profit ratio of short-term holders, which has dropped from 100% to 70%. This suggests that a growing portion of recent investors are now in a loss-making position, which could erode confidence among new entrants. Without a near-term rebound, the market risks losing the momentum needed to attract new capital, potentially leading to increased selling pressure and a deeper consolidation phase.

In addition, the Bitcoin ETFs recorded a net outflow of 1,500 BTC on August 5, marking the largest single-day outflow since April 2025. This indicates a shift in investor behavior and a potential loss of institutional or large-capacity capital. The perpetual contract market also shows signs of moderation, as the funding rate has declined, reflecting a reduced appetite for leveraged long positions. These factors together suggest that speculative fervor, which had previously driven much of the market's volatility, is cooling [1].

Glassnode’s analysis underscores a critical juncture for the Bitcoin market. The ability to stabilize and generate a short-term rebound could be essential in restoring investor confidence and encouraging demand recovery. As the market remains in what the report terms a "liquidity vacuum," the next few weeks will be crucial for determining whether the consolidation phase leads to a sustained downturn or a renewed upward trend driven by renewed investor interest.

Source: [1] Glassnode: Market Needs Short-Term Rebound to Reassure New Investors, On-Chain Data Indicates Speculative Fervor Has Cooled (https://www.theblockbeats.info/en/flash/306309)