Bitcoin (BTC) continues to face downward pressure as it dipped below the critical $114,000 mark this week, with increased exchange inflows and technical breakdowns contributing to a cautious tone in the crypto markets.
The pullback comes just as Trump Media revealed a massive $2 billion allocation to Bitcoin, stirring debate among traders and institutional investors about the long-term trajectory of the world’s largest cryptocurrency.
Market Overview: Bitcoin Under Pressure From Technical Breakdown
As of early August, Bitcoin price today stands near $113,700, marking a decline of over 7% from its mid-July peak of $123,300. Technical indicators point to a bearish short-term outlook following a breakdown from a symmetrical triangle pattern and the emergence of a classic “Three Black Crows” formation on the 4-hour chart—a pattern often associated with extended downward trends.
Key resistance now sits at the 50-period simple moving average (SMA) near $116,852, with short-term resistance levels at $114,939 and $117,000. On the downside, immediate support lies at $112,043, with the next floor seen at $110,065. According to Bitcoin technical analysis, the RSI (Relative Strength Index) has recovered slightly from oversold levels but remains below 42, suggesting weak momentum for any bullish reversal in the near term.
Daily trading volume has surged above $57 billion, underlining heightened volatility as traders attempt to interpret conflicting signals from both macroeconomic developments and on-chain metrics.
Whale Inflows, ETF Outflows, and Institutional Jitters
Data from CryptoQuant highlights an alarming shift in Bitcoin whale behavior. On August 1, whales—wallets holding over 1,000 BTC—accounted for more than 70% of exchange deposits, with over 40,000 BTC sent to exchanges at a loss. This marks the largest single-day inflow since mid-July and pushes the Exchange Whale Ratio to levels historically associated with short-term sell pressure.
At the same time, U.S. spot Bitcoin ETF news hasn’t provided much relief. ETFs recorded $812 million in outflows that same day, the second-largest daily outflow on record. Analysts interpret this as a sign of institutional profit-taking amid growing macroeconomic uncertainty and tighter liquidity conditions.
Trump Media’s $2B Bitcoin Strategy: A Bold Bet or a Game Changer?
Amid this market turbulence, Trump Media & Technology Group (NASDAQ: DJT) made headlines with its $2 billion allocation to Bitcoin and related assets. The company’s Q2 earnings also revealed a $300 million options-based strategy aimed at increasing exposure to BTC price movements, placing Trump Media among the top five publicly listed Bitcoin holders globally.
Trump Media posted a $20 million Q2 net loss despite $883K in revenue, as its $2 billion Bitcoin acquisition drove assets up 800% year-over-year to $3.1 billion. Source: Carl via X
“Liquidity from this strategy will fuel growth in streaming, AI, and potential crypto ETF products,” said CEO Devin Nunes, signaling the company’s ambition to integrate blockchain into its broader media and tech ecosystem. With total assets growing 800% year-over-year to $3.1 billion, Trump Media’s pivot into crypto may influence both Bitcoin news today and long-term market sentiment.
Meanwhile, MicroStrategy reported Q2 net income of $10 billion due to unrealized gains on its massive Bitcoin reserves. In Japan, Metaplanet is preparing to raise $3.7 billion to increase its Bitcoin holdings more than twelvefold by 2027. These developments underscore a growing belief in Bitcoin as an inflation hedge and a long-term institutional asset.
Macro Factors and Sentiment Outlook
Recent U.S. economic data painted a mixed picture, with job growth in July falling short of expectations. Only 73,000 positions were added compared to the projected 104,000. At the same time, core PCE inflation remains elevated at 2.8%, pushing the likelihood of a Federal Reserve rate cut in September to 83%, according to market estimates.
Former BitMEX CEO Arthur Hayes cautioned that mounting macroeconomic stress, paired with escalating global tariff tensions, might drive Bitcoin closer to the $100,000 level—a potential 12% slide from current prices. While this perspective isn’t universally held, it underscores growing investor caution amid increasing market uncertainty.
Expert Insights: Forecasts and Long-Term Outlook
While short-term turbulence persists, several analysts maintain a positive long-term Bitcoin price prediction. Historical price behavior leading into halving events often includes elevated volatility. The upcoming Bitcoin halving in April 2025 is expected to reduce block rewards from 6.25 BTC to 3.125 BTC, introducing a new supply constraint that could influence future price action.
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