Bitcoin News Today: Bitcoin Rebounds to $114K After $112K Dip Amid $12.8 Billion ETF Inflows

Bitcoin’s recent dip to $112,000 was met with strong institutional demand, enabling a swift rebound and stabilizing the cryptocurrency’s price amid ongoing macroeconomic and geopolitical volatility [1]. Unlike previous price corrections, this drop did not trigger a corresponding rally in altcoins, signaling a more cautious approach by large investors and a shift in market dynamics [2]. Analysts from Bitfinex noted that the absence of an "altcoin summer"—a period typically marked by increased altcoin activity following a Bitcoin upswing—highlights the current dominance of institutional forces in shaping market behavior [1].

Institutional investors have been key in supporting Bitcoin during this correction. U.S. spot Bitcoin ETFs saw a $12.8 billion inflow during the stabilization phase, according to market data [1]. This capital influx helped curb volatility and reinforced Bitcoin’s structural demand near the $112K level. Josh Gilbert from eToro observed that “Bitcoin’s fate is no longer in the hands of retail investors, but institutions,” emphasizing a clear shift in market influence [1].

The price action is supported by both on-chain and exchange-based order flow data. A convergence of accumulation and spot buying is evident, indicating that the current rally is driven by real capital flows rather than speculative leverage [1]. This contrasts with previous cycles where retail-driven momentum often led to rapid, uncontrolled price swings. The continued dominance of spot buyers is seen as a positive sign for maintaining a bullish trajectory in the near term [1].

Technical analysis supports the case for stability and potential upside. The $112K level is identified as a confluence of key Fibonacci retracement levels and the lower boundary of a bullish flag pattern. Historically, such levels have attracted strong buying interest, and the current behavior is consistent with that pattern [1]. However, recent data also shows early signs of institutional caution. U.S. spot ETFs recorded a $333 million outflow in a single week, raising questions about the sustainability of current demand [3].

Despite this, the options market remains optimistic. Strong demand for call options at key levels such as $118K, $124K, and $126K for the August 29 expiration indicates that market participants are still positioning for an upward move [4]. QCP Capital has forecast a $126K price target for Bitcoin in August, based on bullish options positioning [8]. As of early August, Bitcoin had rebounded to around $114K after dipping to $111,800, showing resilience and reinforcing confidence in its long-term trend [10].

The broader market environment is also supportive. Retail participation remains robust, with futures order flow data showing a sharp increase in small-position activity within the $112K–$118K range [1]. Institutional bearish activity has remained minimal, further suggesting that large players continue to favor the bullish trend. However, analysts caution that prolonged consolidation or renewed bearish pressure could delay further gains [1].

The coming weeks will be critical in determining Bitcoin’s next move. A successful retest of the $112K support followed by a reversal could signal a continuation of the uptrend. Traders and investors are closely monitoring for signs of a sustained breakout, with the $118K–$126K range seen as key for maintaining a bullish outlook [1].

Source:

[1] BTC’s Path to a New ATH: Key Obstacles You Need to Watch (Bitcoin Price Analysis) (https://coinmarketcap.com/community/articles/68920e5fd648e04dc407e193/)

[3] Bitcoin Tests $112K Support Amid $333M ETF Outflows (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-tests-112k-support-333m-etf-outflows-8-22-july-peak-pullback-2508/)

[4] 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)

[8] QCP Capital: Bitcoin Could Hit $126K This Month (https://www.coinspeaker.com/bitcoin-options-traders-stay-bullish-with-126k-target-for-august-says-qcp-capital/)

[10] Bitcoin steadies near $114K amid Fed rate cut hopes (https://m.economictimes.com/markets/cryptocurrency/crypto-news/bitcoin-steadies-near-114k-amid-fed-rate-cut-hopes-ethereum-cardano-xrp-jump-up-to-8/articleshow/123090770.cms)