Bitcoin News: Bulls Charge Toward $122K as ETF Inflows Drop 80% – Will Seasonal Trends Derail the Rally?
Bitcoin is back in the spotlight as bulls set their sights on a critical $122K liquidity cluster. But with ETF inflows plummeting 80% and seasonal headwinds looming, can BTC sustain its upward momentum? Here’s what you need to know.
Bitcoin Bulls Target $122K Liquidity Cluster
The $122,000 level has emerged as a key battleground for Bitcoin traders. Data from CoinGlass reveals a $2 billion short liquidation cluster in this zone, making it a prime target for bulls. A breakout could trigger a liquidity sweep, but failure risks validating a bearish double-top pattern.
ETF Inflows Decline 80%: A Red Flag?
Institutional demand appears to be cooling, with Bitcoin ETF weekly net inflows dropping sharply to $496 million—an 80% decline from the previous week. This slowdown raises questions about whether retail traders can pick up the slack.
Seasonal Trends Threaten Bitcoin’s Rally
Historical data shows August is typically bearish for Bitcoin, with an average return of -2.56%. Combined with declining active addresses and transfer volumes, this seasonal drag could spell trouble for bulls.
Key Technical Indicators to Watch
- RSI: Dropped to 51.7 from 74.4, signaling weakening momentum.
- Trading Volume: Fell 40% to $8.6 billion daily.
- Profit Balance: 96.9% of Bitcoin’s supply is in profit, increasing sell pressure risks.
Potential Catalysts for a Breakout
The White House’s upcoming crypto policy report and Fed Chair Jerome Powell’s comments could inject fresh momentum. A dovish tilt from the Fed might push Bitcoin past $123K, but execution remains critical.
FAQs
Q: Why is $122K important for Bitcoin?
A: It’s a liquidity cluster with $2 billion in short positions, making it a prime target for bulls.
Q: How significant is the 80% drop in ETF inflows?
A: It suggests institutional demand may be waning, which could weaken Bitcoin’s upward momentum.
Q: What are the seasonal risks for Bitcoin in August?
A: Historically, August has been bearish, with an average return of -2.56%.
Q: What could drive Bitcoin above $123K?
A: Positive policy developments or dovish Fed commentary could act as catalysts.
