The $ 116,000 area will be key as a price support in the short term.
In the medium and long term, the upward narrative remains fully in force.
The Bitcoin (BTC) market is close to the closing of one of the most agitated weeks of the year.
The digital currency began the period with good foot, around $ 116,000, and quickly headed towards a new historical maximum.
On Wednesday, August 13, he marked the top, with a price above $ 124,000 per Bitcoin. However, euphoria lasted little: Just 24 hours later, the quotation receded strongly up to $ 117,000in adverse macroeconomic data and statements from the heart of American economic policy.
In the following graph, provided by the Coingcko platform, the BTC price movement is observed in the last 7 days.
Bitcoin’s jump towards a new historical maximum seemed to consolidate the narrative that this bullish cycle still had fuel to continue advancing. As cryptootics reported, The climb was fed by the sustained entry of institutional and corporate capitalwhich for months ago acts as the background engine of this market. The buying pressure was enough to break the previous record of $ 123,090 and locate BTC in an area never before explored.
But the magic faded quickly. The next day, on Thursday, August 14, The market reacted with a hard correction to two news from the United States. On the one hand, wholesale inflation data (producer price index) were worse than expected, feeding the fear that the Federal Reserve (Fed) maintains a more restrictive position for longer. On the other, the Treasury Secretary, Scott Besent, declared that Donald Trump’s government does not plan to buy Bitcoin for the national strategic reserve, limiting the growth of that fund to the BTC seized in judicial processes.
The combination of both information generated massive sales that pushed BTC again to the strip of $ 117,000, almost completely erasing the profits accumulated in the first half of the week.
But, Besent’s statements deserve a more detailed reading. Initially, the official was categorical: “We are not going to buy.” With this, he gave up with the expectation that the treasure was going to the market to reinforce its possession of BTC. Hours later, Besent clarified his sayings on Network X, ensuring that the Administration is still committed to exploring “neutral budget” forms to expand the reserve. However, the message that was floating is that, at least for now, there will be no direct purchases.
The market had incorporated the expectation that the White House could become an active buyer. The disappointment was immediately reflected in the price.
Bitcoin, caught between 2 forces
The photograph of the week leaves Bitcoin trapped between two forces. On the one hand, a Visible Seller Pressure in each new maximumfed by Traders that take advantage of volatility to take profits. On the other, a more discreet, but constant buying currentfrom investment funds, companies and even sovereign funds.
This interest clash explains the indecision that the market dominates today. While the retailers seem absent – as the low level of searches for “bitcoin” shows it in Google and the low media coverage in the general press – the institutions continue to accumulate patiently.
Currently, as seen in the image below, provided by the Bitcoin Treasuries portal, There are more than 100 public contribution companies with Bitcoin in their balances:
What is coming for Bitcoin?
The big question is where the market will move in the next days. The $ 116,000-117,000 has proven to be a key resistance zone to the falls. If buyers manage to maintain that level, the bullish pressure could be reactivated strongly. On the other hand, a deeper rupture would open the door to major descents, which would question the continuity of the upward cycle in the short term.
In the medium and long term, the upward narrative remains intact. The flow of institutional and corporate capital towards Bitcoin has not stopped. Companies listed in the stock market, such as Microstrategy, giant funds such as Blackrock and Fidelity, and even state players in the Middle East, continue to reinforce their positions. For these actors, a setback of 5,000 or $ 10,000 in the price is just a short -term noise within a commitment of decades.
The big market players continue to accumulate. The retail interest, although today looks off, will return sooner or later, as has always happened in the Bitcoin cycles. So, Weekly indecision should not be confused with structural fragility.
The market will close this week, perhaps without clear definitions (or perhaps we receive surprises between today and Sunday), but with the certainty that the history of Bitcoin is not written in days, but in cycles. And in that cycle, what seems indecision today will be just a pause on the road to new heights.
