- After briefly soaring to a peak of $123k USD ($189k AUD) in July, Bitcoin has slid back by around 7-8%, now stabilising between $113k and $115k USD.
- A Glassnode analysis suggests Bitcoin is encountering a tough barrier near $116k USD, where several recent investors are sitting at a loss.
- Recent ETF outflows, including the largest single-day withdrawal since April, indicate cooling institutional interest.
- Despite the current slowdown, rapid shifts in regulatory sentiment could reignite bullish momentum, as is often the case in the volatile crypto landscape.
After a whirlwind July for BTC, where the world’s largest cryptocurrency topped US $123k (AU $189k), things are starting to cool off.
Bitcoin has trimmed approximately 7-8% off its all-time high since then, now trading between $113k and $115k USD (173k to 176k AUD).
According to a recent Glassnode report, things may get a bit rockier before we see BTC move back toward a new all-time high.
Related: Brazil Eyes $17B Bitcoin Reserve as Part of National Economic Strategy
Bitcoin Facing Strong Resistance at $116k USD
The latest bull run from Bitcoin witnessed a number of new retail and institutional buyers acquire BTC with a cost-basis of above $116k USD ($178k AUD). This has led to what Glassnode is describing as an ‘air gap’ – a tentative price range between $110k and $116k USD where short-term holders are in the red, support is solid and demand isn’t strong enough to set a new ceiling.
While previous forays into these zones have seen strong support, with bullish investors buying the dip, the past fortnight has, according to Glassnode, changed the state of play.
In simple terms, the resistance where most new buyers entered the market – approx 116.9k USD ($180k AUD) has cemented itself as a ceiling that Bitcoin’s price is currently unable to burst through.
Despite the accumulation which has occurred over the last week, the market rebound has thus far lacked sufficient strength to reclaim the cost basis of local top buyers who entered over the past month. For this 1w–1m holder cohort, their cost basis now acts as a resistance level, and is located around 116.9k.
Glassnode InsightsSpot ETF Flows Turn Nasty as Institutional Demand Cools
If Bitcoin can move above its current resistance, we may be back on track to setting all-time highs.
But the broader market isn’t showing a whole lot of confidence, making a bull run toward new heights unlikely in the short term.
For starters, short-term profitability is showing classic fatigue from all-time highs, where 100% of profitable holders have fallen to just 70% at the time of writing.
Adding fuel to the sentiment shift fire are strong ETF outflows. In fact, August 5th was the biggest day for negative spot Bitcoin flows since April 2025, with 1.5k BTC moving out of popular funds. This is another demonstration of demand slowly drying up in the current price zone.
However, if there’s one thing we know, it’s that things happen quickly in the crypto world. While the stars aren’t aligning for Bitcoin in August, the rush of positive regulatory changes could see a shift right back to the bullish side.
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