Bitcoin News Today: Bitcoin Holds Key Supports Above $111,800 Amid ETF Inflows and Rate Cut Hopes

Bitcoin continues to display resilience in the face of a recent pullback, maintaining key technical supports that reinforce a bullish trend despite a sharp correction from its recent high. The cryptocurrency tested critical levels around $112,000 and $111,800, levels that analysts view as essential for the continuation of the uptrend [3]. After a 7% decline from its peak of $123,200, Bitcoin has since stabilized above $115,000, signaling that strong demand remains in the market and suggesting the asset may be entering a consolidation phase ahead of a potential new rally [1].

Price action has shown that Bitcoin respects both diagonal and horizontal support levels, with the $111,800 level proving particularly robust. This level is supported by the 0.618 Fibonacci retracement and the value area high, offering a strong floor for the current correction [1]. The cryptocurrency has also held above the rising diagonal trendline established in April, adding to the bullish technical structure [3]. Analysts, including those from IncomeSharks, have noted that as long as Bitcoin remains above both the horizontal and diagonal supports, the bullish setup remains intact [3].

A key concern for traders is a potential close below both critical support levels, which could invalidate the current bullish pattern and trigger stronger selling pressure. However, so far, the price has not broken this structure, and the market remains in a controlled pullback within the broader uptrend [3]. The recent consolidation also aligns with historical August correction patterns, though the response has been characterized by strong institutional buying and renewed confidence across both retail and professional trader segments [1].

BlackRock’s spot Bitcoin ETF (IBIT) has played a significant role in stabilizing the market, with inflows exceeding $5.175 billion in the past month, pushing its total assets under management to over $84 billion [1]. This outperforms most competing ETFs and positions IBIT as the second-highest in monthly inflows, behind only the Vanguard S&P 500 ETF (VOO) [1]. The recent regulatory environment has also favored Bitcoin’s institutional adoption, with the U.S. Securities and Exchange Commission (SEC) raising the maximum number of options contracts allowed for Bitcoin ETFs from 25,000 to 250,000 [1]. This change benefits BlackRock’s IBIT and places Fidelity’s FBTC at a competitive disadvantage [1].

From a macroeconomic perspective, Bitcoin’s recent volatility coincides with a potential shift in Federal Reserve policy. Recent downward revisions to U.S. job data suggest a weakening labor market, prompting increased speculation about a rate cut in the coming months. Markets are now pricing in an 80% probability of a September rate cut, up from 39% a week prior [1]. Historically, dovish monetary policy has supported Bitcoin’s rally, and with the Fed poised to ease, the cryptocurrency could benefit from a broader risk-on environment [1].

Technical indicators also support a bullish outlook. Price action has respected key support zones with a clean bounce, confirming the presence of strong buying interest [3]. The $111,800 level has held firm, and the next target for the price appears to be $123,200, where the previous all-time high is located [1]. If Bitcoin breaks above the green zone on the chart, it could retrigger the bull run and move toward uncharted territory above $130,000 [3].

Options traders are positioning for a potential move toward $126,000 by late August, with strong demand for call options at key levels such as $118K, $124K, and $126K [1]. While volatility remains elevated, the put skew has not reached panic levels, suggesting that the market is not in bearish capitulation mode. Instead, the current correction is being viewed as a buying opportunity, especially with institutional inflows continuing to support the asset [1].

Long-term holders still control approximately 85% of all Bitcoin, a near-historical high, indicating that the broader market remains bullish despite short-term corrections [5]. This trend, combined with surging interest in asset tokenization and regulatory clarity, suggests that the broader adoption of Bitcoin is likely to continue [5].

Looking ahead, the path to a new all-time high will depend on Bitcoin’s ability to maintain key support levels, the consistency of ETF inflows, and broader macroeconomic conditions. If the current structure holds and institutional demand remains strong, the cryptocurrency could regain momentum and push toward the $130,000 level. However, a breakdown below $111,800 could lead to a deeper correction, potentially targeting $98,200 [3].

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Source:

[1] Bitcoin (BTC) Price Today: Bitcoin Surges Past $115K as ...

https://bravenewcoin.com/insights/bitcoin-btc-price-today-bitcoin-surges-past-115k-as-blackrock-etf-leads-market-institutional-demand-soars

[3] Bitcoin Holds Key $112000 Support Amid Record ETF ...

https://www.ainvest.com/news/bitcoin-news-today-bitcoin-holds-key-112-000-support-record-etf-inflows-institutional-adoption-2508/

[5] Bitcoin, Liquidity, and Macro Crossroads

https://www.coinbase.com/institutional/research-insights/research/market-intelligence/bitcoin-liquidity-and-macro-crossroads