Bitcoin News Today: Bitcoin’s Volatility Unveils a Battle for Investor Confidence

Bitcoin’s price has shown signs of volatility as it struggles to maintain a firm foothold above the $113,000 level, sparking debates among analysts about its potential to recover and break above the $117,500 resistance. Recent data reveals mixed patterns in Bitcoin ETF flows, with some products experiencing net inflows while others face outflows, adding complexity to the overall picture of investor sentiment.

According to the latest figures from Farside Investors, ETFs like IBIT, BITB, and ARKB have seen varying degrees of inflows in recent weeks, while others such as GBTC and BTCW faced significant outflows during the same period. Over the last month, net inflows have averaged around $136.7 million per day, with a total of $54,834 million in inflows recorded since July 2025. However, this trend has not consistently translated into bullish price action, as Bitcoin’s price has remained in a consolidation phase around the $113,000 level [1].

Market data from Delta App shows that as of August 20, 2025, Bitcoin’s price was trading at $113,464.58, representing a 1.93% decline over the past 24 hours. The market cap stood at $2.26 trillion, with a 24-hour trading volume of $10.84 billion. Despite these figures, the circulating supply of Bitcoin remains stable at approximately 19.91 million coins [3]. The broader cryptocurrency market, as reflected by the top ten coins, also experienced downward pressure, with Ethereum, XRP, and Dogecoin all reporting declines in the same period.

Technical analysis from CoinDesk highlights Bitcoin’s struggle to establish a sustainable low around $113,000. The price’s weak bounce from this level, coupled with declining trading volumes, suggests bearish momentum. The descending simple moving averages (SMAs) of 50, 100, and 200 hours further reinforce this bearish bias, while the break below a rising trendline on the daily chart indicates a shift in momentum from bullish to bearish [4]. Analysts have identified key support levels at $111,982 and $110,053, with a decisive move above the 50-day SMA at $116,033 potentially signaling a reversal.

Market sentiment has been further exacerbated by concerns around potential price manipulation and liquidity imbalances. Cointelegraph reports that some analysts have pointed to the coordinated movement of large bid and ask liquidity in the order book as a sign of orchestrated price behavior. The presence of a "plunge protection" mechanism at levels such as $105,000 suggests that institutional or whale-level actors may be influencing the price to maintain a floor beneath the asset. Such manipulation, if true, could impact the broader market’s ability to self-correct and could prolong the current bearish phase [5].

Additionally, macroeconomic factors including U.S. trade policies and ongoing regulatory investigations have contributed to investor uncertainty. Reports of the SEC’s alleged investigation into Alt5 Sigma and its partnership with World Liberty Financial, which involves prominent political figures, have heightened concerns among traders. These factors, combined with disappointing AI adoption in corporate sectors, have created a broader risk-averse environment that has spilled over into the cryptocurrency markets [6]. The U.S. Federal Reserve’s upcoming Jackson Hole symposium, where Chair Jerome Powell is expected to speak, will likely play a crucial role in shaping investor expectations and could influence Bitcoin’s near-term direction.

While Bitcoin faces short-term bearish pressure, historical data from past bull cycles suggests that such pullbacks can serve as precursors to new highs. Analysts at Rekt Capital have pointed to similar retracements in 2017 and 2021, both of which were followed by record-breaking price surges. However, for Bitcoin to break above $117,500 and regain bullish momentum, it must first overcome key psychological and technical hurdles. A sustained move above the 50-day SMA and the formation of a robust bullish candlestick pattern could be early indicators of a potential reversal.

Source:

[1] Bitcoin ETF Flow (US$m) (https://farside.co.uk/btc/)

[2] Bitcoin ETF Flows [Table & Chart] (https://bitbo.io/treasuries/etf-flows/?ref=nobsbitcoin.com)

[3] BTC Coin Price (Live Bitcoin Statistics) (https://delta.app/en/crypto/bitcoin/)

[4] Bitcoin's Unimpressive Bounce Fails to Diminish Downside ... (https://www.coindesk.com/markets/2025/08/20/bitcoin-s-unimpressive-bounce-fails-to-diminish-downside-risk-support-around-usd112k)

[5] Bitcoin analysts point to 'manipulation' as BTC price falls ... (https://cointelegraph.com/news/bitcoin-analysts-point-to-manipulation-as-btc-price-falls-to-17-day-low)

[6] Why is Bitcoin crashing and will $112K be the final bottom? (https://cointelegraph.com/news/why-is-bitcoin-crashing-and-will-112k-be-the-final-bottom)