Bitcoin News Today: Institutional Buyers Step In as Bitcoin Bounces Near $120K

Bitcoin rebounded toward the $120,000 support level after briefly filling a CME futures gap at $118,335, removing a key technical overhang. The move followed a sharp price decline driven by the unexpectedly strong Producer Price Index (PPI) data, which saw July’s PPI rise by 0.9% month-over-month and 3.3% year-over-year, surpassing forecasts of 2.5% [1]. Analyst Jelle described the reaction as a "sharp reaction," noting Bitcoin’s volatility amid traditional market absorption of inflationary signals. The price dipped into the $118,000 range before rebounding, although it has since struggled to maintain momentum above $120,000 [1].

The volatility was further compounded by a sell-off in which Bitcoin briefly traded at $118,335, a 1.9% drop in the past 24 hours [1]. British Hodl, who previously highlighted the formation of the CME gap, confirmed its closure, marking a significant development in the technical landscape. The gap’s resolution is seen as removing a key overhead pressure point, potentially easing downward momentum in the short term [1]. Meanwhile, Bull Theory identified $117,500 as an immediate support level, with a potential drop to $110,000 if the price breaks below. Resistance remains at $124,000 [1].

Institutional demand for Bitcoin and Ethereum remained robust during the recent correction. BlackRock’s iShares Bitcoin Trust (IBIT) and its Ether equivalent added over $500 million to their positions on Thursday, despite a broader market sell-off that saw Bitcoin and Ether prices drop by more than 5% [2]. The combined trade volume for the BTC and ETH spot ETFs reached $11.5 billion, according to Bloomberg ETF analyst Eric Balchunas, a figure comparable to Apple stock trading volumes [2]. This “buy the dip” strategy by institutional investors highlights continued confidence in the assets, even amid short-term volatility.

Bitcoin’s move to near $117,200 also brought attention to the CME futures gap, which was nearly filled [2]. Traders like Ted Pillows noted the significance of this level, with many believing that the worst of the recent volatility may now be behind the market. Jelle observed that the price had held a key support level and that the CME gap was partially filled, with Bitcoin now trading above the 50 EMA on the four-hour chart. Analyst Daan Crypto Trades suggested that the level could become an important reference point if the price revisits the lower end of the gap [2].

In the broader market context, Ethereum also approached a key CME gap at $4,070, a zone historically associated with potential breakouts or reversals [5]. Retail investors have been selling Ethereum, reducing their holdings from 10.5 million ETH to 8.7 million since March 2025, while large holders have been accumulating. This shift suggests a potential realignment of market sentiment, with institutional and long-term investors positioning themselves for a longer-term recovery. Ethereum’s exchange reserves have also reached three-year lows, signaling reduced selling pressure and increased confidence in the asset’s future [5].

Looking ahead, traders and analysts will closely monitor key macroeconomic events, including the U.S. Federal Reserve’s July FOMC minutes and Jerome Powell’s speech at Jackson Hole. These developments could influence Bitcoin and Ethereum’s next major directional moves. The PPI data has already disrupted Ethereum’s all-time-high trajectory, and further volatility is anticipated as markets react to upcoming economic signals. While Bitcoin appears to have stabilized near the $120,000 level, further consolidation or a breakout remains contingent on macroeconomic developments and institutional activity [1].

Source:

[1] Bitcoin Fills CME Gap in Recent Crash to $118K (https://thecryptobasic.com/2025/08/14/bitcoin-fills-cme-gap-in-recent-crash-to-118k/)

[2] BlackRock Bitcoin, Ether ETFs buy $1B as BTC price mostly fills CME gap (https://cointelegraph.com/news/blackrock-bitcoin-ether-etfs-buy-1b-btc-price-mostly-fills-cme-gap)

[5] ETH Price Targets $4070 CME Gap After Hitting Key Zone (https://cryptopotato.com/eth-price-targets-4070-cme-gap-after-hitting-key-zone/)