Bitcoin Tests $112k Support as a Whale Sells BTC to Long ETH for $577 Million

2d ago•

bullish:

bearish:

Bitcoin's price chart shows it testing a key support level amid clear signs of capital rotation from BTC into altcoins.

Bitcoin is testing its crucial support zone around the $112,000 price level
Data shows major capital rotation, with BlackRock’s ETH ETF seeing inflows as its BTC ETF bleeds
Persistent inflation fears and uncertainty over a September rate cut are adding to the pressure

Bitcoin (BTC) price has been trapped in a mid-term correction mode since hitting its all-time high of around $124.4k last week. The price has been testing the critical $112k support zone, a level that analysts see as a crucial line in the sand for the current bull market.

On the daily chart, a potential double-top formation combined with a bearish RSI divergence suggests that sellers have had the upper hand, with the $120k resistance proving to be a formidable barrier. But the question on every trader’s mind is simple: why is Bitcoin struggling?

From a different perspective, the BTC/USD pair could be forming a horizontal consolidation, which ranges between $112,108 and $123,500. The horizontal consolidation will be invalidated if BTC price consistently closes either below or above the upper border in the coming days.