Bitcoin battles below $114k while cryptocurrency markets adjust: What comes next?
With the flagship cryptocurrency Bitcoin (BTC) selling at $114,000, roughly 9% lower than its peak of $124,457, hit last week on August 14, the cryptocurrency markets are recalibrating following recent highs. The same may be said for altcoins. Ethereum (ETH) was under pressure even though it was still trading above $4,100.
Nonetheless, market analysts maintain their optimism, arguing that persistent macroeconomic indicators point to a possible trend reversal.
According to CoinMarketCap data, Bitcoin (BTC) was down 1.13 percent at $113,708 at the time of the previous check, with a 24-hour trading volume of $70.98 billion. The flagship cryptocurrency varied between $112,578 and $115,906 throughout the course of the last day. With a market capitalization of $2.26 trillion, it was confirmed to be the biggest cryptocurrency globally in terms of market value.
Experts weigh in
According to Edul Patel, co-founder and CEO of Mudrex, Bitcoin is presently trading above $113,400 as international markets react to US President Donald Trump’s proposal of 50% extra tariffs on steel and aluminum imports. He thinks that these tariffs have caused a risk-off attitude by igniting worries about the US economy contracting.
But according to Patel, macroeconomic variables like the US dollar’s weakening value are making non-sovereign assets more appealing, which may indicate a reversal in the trend. Furthermore, approximately 20,000 BTC has been added by Bitcoin whales in the last week, indicating high demand for the asset.
Patel stated that Bitcoin must protect the $112,000 support from a technical standpoint. Before a possible relief rally, Bitcoin might test the $110,000 range if it doesn’t.
On the other side, profit booking at higher levels was blamed for the decline in the price of Bitcoin by Riya Sehgal, a research analyst at Delta Exchange. Bitcoin is still trading in a short-term downward trend, despite its stability.
“A break above $114,000 could open the way to $116,000–118,000 for Bitcoin, while a drop below $112,500 may expose $110,000,” Sehgal stated.
Ethereum sees support at $4,000–$3,910 levels
The second-largest cryptocurrency in the world by market capitalization, Ethereum (ETH), was likewise trading below the 100 EMA at the same time. With a 24-hour trading volume of $49.4 billion, ETH was down 1.4% at $4,176 at the time of the previous check. The market value of Ethereum was $504.14 billion.
Sehgal thinks that in order to restore a bullish perspective, Ethereum could need to climb the $4,280–$4,320 level. But if that doesn’t happen, there might be a retest of the $4,000–$3,910 levels, she said.
Altcoins trade lower
Other well-known cryptocurrencies witnessed losses of 8.37%, 4.4%, and 0.79 percent, respectively, including Cardano (ADA), Ripple (XRP), and Hyperliquid (HYPE). Solana (SOL), meanwhile, was up 0.29 percent in trading.
Tether (USDT), a stablecoin based on the US dollar, stayed steady at $1 in the meantime.
ETF flows reverse
However, following significant inflows in July, ETF flows have reversed. On August 19, there were $523.3 million withdrawals from Bitcoin ETFs and $422.2 million outflows from Ethereum ETFs. In anticipation of Fed Chair Jerome Powell’s speech at Jackson Hole, which is anticipated to determine the short-term course for cryptocurrency markets, analysts say this signals profit-taking and looser positioning. Price activity is probably going to remain range-bound until then.
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