Bitcoin slipped to $114,736 before rebounding to $116,314 on Monday, mirroring broader market weakness with global crypto capitalization dropping 1.42%, according to CoinMarketCap data. The decline came as traders grappled with heightened geopolitical risk, technical breakdowns, and signs of waning institutional appetite.
Geopolitical Uncertainty Sparks Liquidations
Markets reacted negatively to the inconclusive Trump-Putin summit on Ukraine, which failed to deliver clarity on future policy direction. The uncertainty triggered $584 million in liquidations, with long positions accounting for 86% of the total. Historical patterns suggest that periods of geopolitical stress often drive crypto sell-offs, undermining risk appetite across digital assets. Investors are closely watching the U.S.-led Ukraine talks scheduled for later today (Aug. 19) to gauge the next market impulse.
Technical Breakdown Adds Pressure
Bitcoin breached key support levels, slipping under its 7-day simple moving average ($118,992) and the 23.6% Fibonacci retracement ($121,504). Momentum indicators also turned cautious, with the relative strength index at 47.24 signaling neutral-to-bearish conditions. The slide activated stop-loss triggers and algorithmic selling, amplifying downside pressure. Analysts flagged $114,500, the 38.2% Fib retracement, as a critical support zone. A breakdown could extend losses toward $111,000, although the 200-day EMA at $100,286 remains intact, preserving the broader uptrend.
ETF Outflows Signal Cooling Institutional Demand
Spot Bitcoin ETFs recorded their first net outflows in over a week, with $14 million exiting funds, while Ethereum ETFs shed $59 million. This follows a record $3.75 billion inflow earlier this month, suggesting institutional investors are rotating profits after aggressive accumulation. Notably, BlackRock’s IBIT drew $336 million in fresh inflows on Aug. 15, underscoring mixed demand signals among large investors. Analysts warn that ETF flows remain a key price floor, and sustained outflows could weaken structural support for BTC.
Context: From ATH to Correction
Bitcoin’s latest dip comes only days after it set a fresh all-time high, powered by unprecedented ETF inflows and bullish macro sentiment. Historically, pullbacks often follow record peaks as traders book profits and markets test new support levels. The current correction reflects a natural cooling period after an overheated rally, with ETF flow reversals, technical resets, and geopolitical concerns acting as catalysts. Despite the short-term pressure, the 200-day EMA shows the long-term trend remains firmly intact, framing the downturn as consolidation rather than reversal.
Expert’s Take on the Market
Ryan Lee, Chief Analyst at Bitget, said Bitcoin appears set to consolidate between $112,000 and $118,000 while Ethereum trades in the $4,100 to $4,600 range.
He noted that leverage remains high across futures markets, amplifying volatility in both directions. “Macro factors remain crucial, particularly with the Federal Reserve’s September decision looming. Hawkish policy signals could pressure risk assets further, while dovish cues may extend crypto’s rebound,” Lee added.
Shivam Thakral, CEO of BuyUcoin, highlighted that the total crypto market cap has dropped below $4 trillion, with BTC pressured by liquidations and global uncertainty.
“ETH has lost steam after its rally, consolidating near $4,300, while XRP and SOL saw 4-5% declines,” he said. Thakral added that diminishing rate-cut hopes suggest markets may stay choppy in the near term.
Bitcoin’s Near-term Outlook
Bitcoin’s near-term trajectory hinges on whether $114,500 holds as support amid a backdrop of elevated leverage, geopolitical headlines, and shifting ETF flows. While the long-term uptrend remains intact above the 200-day EMA, traders face a volatile environment with risks tilted toward further downside if uncertainty persists.
Read Also: Solana Expands Stablecoin Payment Reach Through BitPay Integration
Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.