Bitcoin News Today: Bitcoin Tests $112K Support Amid $333M ETF Outflows and 8.22% July Peak Pullback

Bitcoin’s price is currently under pressure as it tests the key $112,650 support level, with a -1.46% decline to $113,155 recorded over the past 24 hours. This downward movement coincides with a significant $333 million outflow from Bitcoin ETFs on a single day, marking the largest institutional selling pressure of the month [1]. Analysts have noted that this outflow reflects growing uncertainty about the sustainability of the ongoing bull run and a potential shift in institutional positioning from accumulation to distribution.

The technical indicators provide a mixed outlook. Bitcoin is currently trading below all major exponential moving averages (EMAs), including the 20-day at $114,708, 50-day at $115,380, and 200-day at $114,714. This bearish positioning indicates a need for a significant price recovery to challenge these levels [1]. The RSI at 38.63 suggests Bitcoin is nearing oversold territory, potentially setting the stage for a short-term bounce if the key support at $112,650 holds [1].

Volume activity has been moderate during the decline, with 3.58K BTC traded, indicating reduced institutional participation. The ATR (Average True Range) at 112,870 reflects high volatility, suggesting that large price swings could occur once the current consolidation phase resolves [1].

Bitcoin’s August decline is a continuation of a broader correction from the July peak of $123,218, representing an 8.22% pullback. This follows a strong first-half recovery that pushed prices from a January low of $93,576 to a July high of $119,447. The current test of the $112K psychological support is critical for determining whether the bull run can continue or if further correction is likely [1].

If the support fails, the next major target for sellers would be the $110K–$111K zone, a historically significant accumulation area where institutional buyers have previously stepped in. Conversely, a rebound above the 20-day EMA at $114,708 could trigger short covering and move the price toward the $117K–$119K resistance range [1].

The ETF outflows are not limited to Bitcoin. Ethereum ETFs also recorded $465 million in outflows, indicating a broader institutional de-risking across the cryptocurrency asset class. This synchronized selling suggests a strategic rebalancing rather than a Bitcoin-specific issue [1].

Despite the selling pressure, there are signs of underlying support. The White House has signaled regulatory action against banks engaging in crypto debanking, which could provide a positive regulatory backdrop. Additionally, Indonesia has recently explored the possibility of adopting Bitcoin as part of its national reserves, a move that could boost demand and institutional confidence [1].

Market fundamentals remain strong, with Bitcoin maintaining a market dominance of 61% and a $2.24 trillion market cap. The 12.65% surge in trading volume to $59.33 billion indicates ongoing interest, though the 1.66% drop in market cap suggests caution among traders. Bitcoin’s circulating supply of 19.9 million tokens, representing 94.8% of the maximum supply, continues to offer fundamental support due to its low inflationary nature [1].

Social sentiment, however, is trending bearish. LunarCrush data shows a decline in Bitcoin’s AltRank to 701 and a Galaxy Score of 63, reflecting growing community concern over ETF outflows and price declines. Despite this, engagement metrics remain high, with 80.08 million total engagements and 259.31K mentions, indicating sustained interest during a period of uncertainty [1].

Looking ahead, three key price scenarios have been identified based on Bitcoin’s potential trajectory over the next 90 days:

1. : A successful defense of the $112K support level combined with regulatory progress could drive Bitcoin back toward $125K–$130K. This scenario would require stabilization in ETF outflows and renewed institutional interest [1].

2. : Continued outflows may lead to a trading range between $105K–$115K, allowing technical indicators to reset. This consolidation could last between 8–12 weeks [1].

3. : A breakdown below $112K could trigger further selling toward the $100K–$105K zone. This would represent a 10–15% decline and would likely require sustained institutional selling and regulatory headwinds to persist [1].

The current market environment highlights the tension between institutional selling pressure and emerging sovereign demand. While ETF outflows are a concern, the prospect of countries like Indonesia considering Bitcoin as a reserve asset could serve as a long-term catalyst for price appreciation. Institutional buyers may see the current pullback as an opportunity to accumulate at more attractive levels.

Shawn Young, Chief Analyst at MEXC Research, noted that despite the broader market sell-off, buyers have already stepped in to defend key support levels, allowing Bitcoin to rebound above $118,000 [1]. This suggests that while the near-term outlook is uncertain, the underlying demand for Bitcoin remains strong.

Overall, Bitcoin’s immediate direction will depend on whether the $112K support level holds and whether ETF outflows stabilize. A successful defense could set the stage for a recovery toward $125K–$130K, reinforcing the asset’s role as a long-term store of value. Failure to hold the key support, however, could prolong the correction and test the resilience of institutional and sovereign demand [1].

Source: [1] ChatGPT’s BTC Analysis Shows Key $112K Support Amid $333M ETF Outflows as Bull Run Faces Uncertainty (https://cryptonews.com/news/chatgpt-btc-analysis-112k-support-333m-etf-exit/)