Bitcoin News Today: Bitcoin Retreats to $113K–$115K Amid Profit-Taking and ETF Outflows

Bitcoin's recent price correction has reignited discussions about whether the market is setting the stage for a deeper pullback before a potential resurgence. Following a mid-July peak near $123,000, the cryptocurrency has since retreated to a range of approximately $113,000–$115,000, raising questions about the sustainability of the current bullish trend. CryptoQuant analyst Ja Maartunn argues that the ongoing pullback is not a random fluctuation but a structural adjustment driven by shifting behaviors among long-term and short-term holders [1].

According to Maartunn, the increased selling pressure from Long-Term Holders (LTHs) is a key indicator. A major development was the activation of a Satoshi-era wallet that moved around 80,000 BTC after 14 years of inactivity through Galaxy Digital. This movement, combined with a surge in realized losses from Short-Term Holders (STHs)—including 52,230 BTC from July 15–18, 42,493 BTC from July 24–28, and 70,028 BTC after July 31—suggests a prolonged period of profit-taking and loss-realization. These patterns are typical during late-cycle corrections and act as a necessary pressure valve before a potential rebound [1].

On the institutional front, demand appears to be cooling. ETF flows have shown signs of this trend, with CoinShares reporting the first net weekly outflow in 15 weeks, led by a $404 million withdrawal from Bitcoin funds. Daily outflows for U.S. spot Bitcoin ETFs have also been noted, including a $196 million outflow on a single day. Although corporate buyers such as MicroStrategy and Metaplanet have injected capital—MicroStrategy added 21,021 BTC between July 28 and August 3, and Metaplanet added 463 BTC on August 4—these inflows are not enough to maintain Bitcoin near the $120,000 level [1].

From a technical standpoint, Maartunn highlights $112,000 as a critical support level. He describes this as a “former all-time high” in relation to the breakout zone, though not the absolute record. The UTXO realized price distribution supports this level, showing strong on-chain activity in the $108,000–$112,000 range. This area marks where a large number of coins last changed hands, making it a key level for the next phase of price movement [1].

If Bitcoin remains above this support zone, Maartunn suggests the current pullback is part of a normal correction within a broader bullish cycle. However, a break below $112,000 could signal a more significant shift in market sentiment, potentially ending the current bullish trend. Such a break would represent a structural change rather than a temporary dip [1].

Meanwhile, analysts on TradingView have used Elliott Wave theory to speculate that Bitcoin could return to $120,000 or even surpass its current all-time high [2]. Additionally, some market participants believe that if the SEC’s Project Crypto delivers on regulatory clarity, Bitcoin could reach $150,000 by 2026 [3].

At the moment, Bitcoin is trading at $114,238, above the EMA50 line on the 1-day chart. The market is in a consolidation phase, and the outcome of this period will likely determine the next major direction for Bitcoin. A controlled drawdown could precede a fresh rally if key support levels hold. However, a breakdown could signal the start of a deeper correction. Investors and traders will be closely watching for signs of a resolution in the coming weeks.

[1] Source: Bitcoin Bull Run Already Over? Whales Are Bailing, Retail's... https://www.newsbtc.com/bitcoin-news/bitcoin-bull-run-already-over-whales-bailing/

[2] Source: Elliott Wave — Trading Ideas on TradingView https://www.tradingview.com/ideas/elliottwaves/

[3] Source: SEC's Project Crypto: Could Bitcoin Hit $150000 by 2026? https://www.interactivecrypto.com/secs-project-crypto-could-bitcoin-hit-150000-by-2026