Bitcoin News: Price Stalls at $122K as ETF Flows Cool and On-Chain Metrics Weaken
Bitcoin’s rally toward the $122,000 mark has hit a roadblock, with weakening on-chain metrics and cooling ETF inflows raising concerns among investors. Will BTC break through resistance, or is a deeper correction looming? Let’s dive into the latest Bitcoin news and analyze the key factors at play.
Bitcoin Price Struggles Amid Weak On-Chain Metrics
Bitcoin’s recent price action shows consolidation between $117K and $119K, with multiple failed attempts to breach the $122K resistance. Key on-chain metrics reveal:
- Daily trading volume dropped sharply to $8.6B, reducing upward momentum.
- Active addresses and transfer volumes are declining, signaling reduced network activity.
- The RSI has fallen from 74.4 to 51.7, indicating fading bullish pressure.
ETF Flows Cool as Institutional Demand Slows
Spot Bitcoin ETF inflows plunged 80% last week to just $496M, reflecting cooling institutional interest. This slowdown coincides with:
- Seasonal headwinds—August historically sees negative returns 60% of the time.
- A $2B cluster of vulnerable short positions near $121.6K, creating potential volatility.
Technical Outlook: Double-Top Risk and Key Levels
The inability to break above $123.2K raises concerns of a double-top pattern, which could trigger a bearish reversal. Key levels to watch:
| Support | Resistance |
|---|---|
| $117K | $119K |
| $115K (100-day EMA) | $122K |
Potential Catalysts: Policy Shifts and Fed Decisions
External factors could reignite bullish momentum:
- The U.S. White House’s upcoming crypto policy report may introduce a Bitcoin Reserve Framework.
- The Fed’s FOMC meeting—any dovish hints could spur speculative buying.
Conclusion: A Fragile Balance for Bitcoin
Bitcoin faces a tug-of-war between technical resistance and macroeconomic forces. While bulls eye liquidity above $122K, weak fundamentals and seasonal trends suggest prolonged consolidation. Investors should monitor ETF flows, on-chain activity, and policy developments for clues on the next major move.
Frequently Asked Questions (FAQs)
Q: Why is Bitcoin struggling to break $122K?
A: Weak on-chain metrics, cooling ETF inflows, and seasonal trends are creating headwinds.
Q: What is the significance of the $123.2K resistance level?
A: Historically a strong barrier, failure to break it could form a double-top pattern, signaling a bearish reversal.
Q: How are ETF flows impacting Bitcoin’s price?
A: A sharp 80% drop in inflows suggests institutional demand is waning, reducing upward pressure.
Q: Could upcoming policy changes boost Bitcoin?
A: Yes, the U.S. White House’s crypto report and Fed rate decisions could reignite bullish sentiment.
