BTC is trading at $119,954 with weekly growth slowing to 5.46%. Technicals lean bearish with RSI at 35.8, and the Bitcoin DeFi ecosystem now holds $24B TVL, with Bitlayer contributing $384M. Bitlayer’s BitVM Bridge enables trust-minimized BTC transfers to smart contract platforms, while its EVM-compatible engine (sub-10ms latency) and new computational layer are pushing Bitcoin’s programmability forward. Backers include Franklin Templeton and Polychain Capital.
Trading Strategy Insights
Key support sits at $115K, while a breakout above $121,894 could confirm bullish momentum. Historically, August has seen a 7.87% average decline, so traders should remain cautious. ETF inflows and YBTC adoption on Bitlayer are important trend indicators. Short-term dips could offer strategic entries, but disciplined risk management is essential.
Regulatory & Macro Factors
On the regulatory front, the CFTC’s “Crypto Sprint” and SEC’s “Project Crypto” aim to clarify rules, while El Salvador’s Investment Banking Law now allows banks to hold BTC. Spot inflows are muted at $220M, but institutional interest is growing — a potential signal that smart money is positioning for the next move.