Bitcoin struggles below $114k as crypto markets recalibrate: What's next?

The crypto markets are recalibrating after recent highs, with the flagship cryptocurrency Bitcoin (BTC) trading below the $114,000 mark, nearly 9 per cent down from its peak of $124,457, scaled last week on August 14. The sentiment extended to altcoins as well. Ethereum (ETH), though holding above the $4,100 mark, was under pressure. 

 

The market analysts, however, remain optimistic, suggesting that ongoing macroeconomic factors point toward a potential trend reversal.

 

At last check, Bitcoin (BTC) was trading around $113,708, down 1.13 per cent, with a 24-hour trading volume of $70.98 billion, according to data from CoinMarketCap. Over the past 24 hours, the flagship cryptocurrency fluctuated between $112,578 and $115,906. Its market capitalisation stood at $2.26 trillion, confirming its position as the largest cryptocurrency in the world by market value.

Experts weigh in

Bitcoin is currently holding above the $113,400 mark as global markets respond to US President Donald Trump’s announcement of 50 per cent additional tariffs on aluminum and steel products, said Edul Patel, Co-founder and CEO of Mudrex. These tariffs, he believes, have raised concerns about economic contraction in the US, creating a risk off sentiment.

 

However, Patel believes that macroeconomic factors, such as the declining strength of the US dollar, are increasing the appeal of non-sovereign assets, which could point to a trend reversal. Additionally, Bitcoin whales have added over 20,000 BTC in the past week, showing strong demand for the asset.

 

From a technical perspective, Patel said that Bitcoin needs to defend the $112,000 support. If it fails to do so, BTC could test the $110,000 zone before a potential relief rally.

 

Riya Sehgal, research analyst at Delta Exchange, on the other hand, attributed the pullback in Bitcoin's price to profit booking at higher levels. While Bitcoin is holding steady, it continues to trade in a short-term downtrend.

 

"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," said Sehgal.

Ethereum sees support at $4,000–$3,910 levels

Meanwhile, Ethereum (ETH), the world's second-largest cryptocurrency by market capitalisation, was also trading below the 100 EMA. At last check, ETH was quoted at $4,176, down 1.4 per cent, with a 24-hour trading volume of $49.4 billion. ETH's market capitalisation stood at $504.14 billion.

 

Sehgal believes Ethereum may need to scale the $4,280–$4,320 range to reclaim a bullish outlook. However, failure to do so could lead to a retest of the $4,000–$3,910 levels, she added.

Altcoins trade lower

Among other popular cryptocurrencies, Cardano (ADA) was down 8.37 per cent, Ripple (XRP) was down 4.4 per cent, and Hyperliquid (HYPE) saw a loss of 0.79 per cent. Meanwhile, Solana (SOL) was trading with a gain of 0.29 per cent. 

 

Meanwhile, the US dollar-pegged stablecoin Tether (USDT) remained flat at $1.

ETF flows reverse

ETF flows, however, have reversed after strong inflows in July. On August 19, Bitcoin ETFs saw $523.3 million in outflows, while Ethereum ETFs recorded $422.2 million in outflows. Analysts suggest this indicates profit-taking and lighter positioning ahead of Fed Chair Jerome Powell’s speech at Jackson Hole, which is expected to set the near-term direction for crypto markets. Until then, price action is likely to stay range-bound.