Bitcoin's price decreased by 2.7% to $111,665 over the past 24 hours, declining compared to the broader cryptocurrency market performance, which fell by 2.78%. Key factors behind this decline include miner selling, ETF withdrawal flows, and technical breakdowns in price.
1. Miner Capitulation
Miners sold 5,066 units of Bitcoin worth $565 million within 24 hours, the largest daily sale volume since December 2024.
2. ETF Withdrawals
Spot Bitcoin funds recorded a weekly withdrawal of $1.5 billion, the highest since February.
3. Technical Breakdown
The price fell below the support level at $118,859, leading to the liquidation of Bitcoin positions worth $263 million.
Detailed Analysis
1. Miner Selling (Negative Impact)
Overview: The net miner position indicator showed a sharp decline of 5,066 units of Bitcoin on August 21, indicating intense selling. This came after the price failed to maintain its high on August 14 at $123,731.
What does that mean?
Miners are likely to sell their coins to cover operating costs amid tight profit margins (retail price at $0.09 per terahash/day).
Miner reserves decreased by 2.1% over 30 days, increasing selling pressure equivalent to 10% of daily spot trading volume.
What to watch for: The "Hash ribbons" indicator – prolonged miner capitulation may extend the correction period.
2. Decreased Demand for ETFs (Negative Impact)
Overview: U.S. spot Bitcoin funds recorded a weekly withdrawal of $1.51 billion (SosoValue), reversing a six-week trend of inflows. BlackRock's IBIT fund experienced its first withdrawal since January.
What does that mean?
Profit-taking by institutions accelerated after Bitcoin failed to reclaim the $120,000 level. ETF assets dropped to $149 billion (-2.1% compared to the previous week).
The ratio of spot trading volume to derivatives has dropped to 0.22, indicating the dominance of derivatives in price movement.
3. Technical Breakdown (Mixed Impact)
Overview: Bitcoin's price broke the support level at $118,859, which is a Fibonacci level representing a 23.6% retracement from the all-time high of $124,000, in addition to breaking the 30-day simple moving average at $116,518.
What does that mean?
The MACD indicator at -493 indicates strong bearish momentum. The relative strength index (RSI) at 44.28 means it has not yet reached the oversold territory, leaving room for further declines.
The next important support is at $111,060 (the low on August 23). A close below this may push the price to target the 200-day exponential moving average at $100,787.
Summary
Bitcoin's decline reflects a state of tension among miners, profit-taking by institutions, and failure of technical support, which is a traditional consolidation pattern after reaching an all-time high.
Key point to watch: Will Bitcoin be able to maintain the critical psychological level at $110,000 before the Federal Reserve speeches in Jackson Hole on Friday? It's also advised to monitor Bitcoin's dominance ratio (57.49%) to track any capital shifts towards alternative cryptocurrencies.
