Crypto market on edge: BTC, ETH fight to hold gains amid ETF outflows

The cryptocurrency market is attempting a modest recovery, with flagship token Bitcoin (BTC) stabilising above the $113,600 mark after briefly slipping below $112,400 earlier. Ethereum (ETH) has also shown resilience, trading above the $4,200 level.

 

Despite the bounce, analysts believe that institutional flows continue to reflect caution. On August 20, BTC exchange-traded funds (ETFs) saw outflows totaling $315.9 million, while ETH ETFs registered $250.2 million in redemptions. This marked the fourth consecutive day of net outflows, highlighting persistent investor hesitation.

 

At last check, Bitcoin was trading at $113,637, up 0.10 per cent, with a 24 hours trading volume of $65.36 billion. The leading cryptocurrency remains about 8 per cent below its all-time high of $124,457, reached on August 14, according to CoinMarketCap. Its market capitalisation stands at $2.26 trillion, reinforcing its dominance in the digital asset space.

 

 

Over the past 24 hours, BTC has fluctuated within the range of $112,387 to $114,802.

Bitcoin faces resistance at $116,700–$118,200

As Bitcoin (BTC) attempts a rebound from recent lows, analysts remain divided on whether the recovery has strong legs. The flagship cryptocurrency has bounced back from the $112,000 zone, but concerns over macroeconomic uncertainty continue to cloud the outlook.

 

According to Riya Sehgal, research analyst at Delta Exchange, market sentiment has seen a slight shift in favour of the bulls, following Bitcoin’s bounce from the recent dip. “Caution persists with US rate cut uncertainty in focus, and a clearer market direction is likely to emerge after these events,” she said.

 

Despite this recovery, Sehgal believes the overall technical picture remains weak. On the 4-hour chart, Bitcoin is still trading below key moving averages, suggesting that the broader trend remains bearish.

 

Echoing the cautious optimism, Edul Patel, Co-founder and CEO of Mudrex, noted that the crypto market is in the early stages of a recovery, with several major tokens posting gains. Patel pointed out that Bitcoin is currently testing immediate resistance near $114,600. If the rally gains traction, the next key resistance levels to watch are $116,700 and $118,200.

 

“A clean breakout above $118,200 would confirm that momentum is back in favour of the bulls,” Patel said.

Ethereum, Other altcoins trade higher

Ethereum (ETH) is showing early signs of short-term bullish momentum on the 1-hour timeframe, supported by a 20/50 EMA bullish crossover. At last check, ETH was trading 2.62 per cent higher at $4,286, with a 24-hour trading volume of $47.09 billion. According to Sehgal, the $4,322–$4,350 zone, where the 100 and 200 EMAs cluster, remains a key resistance area to clear.

 

Among other altcoins, OKB (OKB), Morpho (MORPHO), Conflux (CFX), GateToken (GT), Pudgy Penguins (PENGU), Aave (AAVE), Story (IP), Dogecoin (DOGE), Algorand (ALGO), Sonic (S), and PancakeSwap (CAKE) were the top gainers on CoinMarketCap, rising by up to 52 per cent. On the flip side, Mantle (MNT) was the top loser, trading 9 per cent lower.

 

Further, among the popular altcoins, Solana (SOL) was trading 3.54 per cent higher, Cardano (ADA) was up 3 per cent, Binance Coin (BNB) gained 3.4 per cent, Sui (SUI) rose 1.12 per cent, Hyperliquid (HYP) was up 0.99 per cent, and Ripple (XRP) advanced 0.81 per cent.