Bitcoin’s rally toward $122,000 has hit a roadblock, with weakening on-chain metrics and cooling ETF flows raising concerns. Will BTC break through resistance, or is a deeper correction ahead? Let’s dive into the latest Bitcoin news and market trends.
Bitcoin Price Struggles Near Key Resistance
BTC has been consolidating between $117,000 and $119,000, struggling to push past the critical $123,200 resistance level. Key factors influencing the price include:
- Technical Indicators: The RSI has dropped from 74.4 to 51.7, signaling reduced buying pressure.
- Short Positions: A $2 billion cluster of vulnerable shorts near $121,600 could trigger volatility.
- Double-Top Risk: Failure to break $123,200 may form a bearish reversal pattern.
On-Chain Metrics Show Weakness
Bitcoin’s on-chain activity has declined, raising concerns about sustainability:
| Metric | Current Value | Impact |
|---|---|---|
| Daily Trading Volume | $8.6B | Lower liquidity makes upward moves harder |
| Active Addresses | Declining | Reduced network activity |
ETF Flows Cool as Institutional Demand Slows
Spot BTC ETF inflows dropped 80% last week to just $496 million, signaling fading institutional interest. This could delay a breakout unless new catalysts emerge.
What Could Reignite Bitcoin’s Rally?
Potential bullish triggers include:
- U.S. Crypto Policy Report: A Bitcoin Reserve Framework could boost ETF inflows.
- Fed Rate Cuts: Dovish signals from the FOMC may spur speculative buying.
Conclusion: A Fragile Balance Ahead
Bitcoin faces a mix of technical resistance, weak on-chain data, and cooling ETF demand. While external catalysts could shift momentum, traders should prepare for potential consolidation or a pullback.
Frequently Asked Questions (FAQs)
1. Why is Bitcoin struggling near $122K?
BTC faces resistance due to weak on-chain metrics, declining ETF inflows, and historical August bearish trends.
2. What is the significance of the $123,200 level?
It’s a strong historical resistance zone. A breakout could signal bullish continuation, while rejection may lead to a double-top reversal.
3. How are ETF flows affecting Bitcoin’s price?
Lower ETF inflows reduce institutional buying pressure, making it harder for BTC to sustain upward momentum.
4. What should traders watch next?
Monitor U.S. crypto policy updates, Fed rate decisions, and on-chain activity for signs of renewed demand.
