Bitcoin Slips 2.3% to $115K as Inflation, Technical Weakness, and Whale Moves Weigh on Market

Bitcoin (BTC) dropped 2.3% over the past 24 hours to trade near $115,287, underperforming the broader crypto market’s 2.9% decline.

The pullback comes as macroeconomic uncertainty, technical breakdowns, and large-wallet activity created a mix of bearish pressures across digital assets.

Macro Jitters Dampen Sentiment

Fresh U.S. inflation data rattled investor confidence. The Producer Price Index (PPI) rose 0.5% in July, surpassing expectations and lowering the odds of aggressive Federal Reserve rate cuts. Markets now anticipate a modest 25-basis-point cut in September, compared to hopes for a 50-point move earlier this month.

A stronger dollar reinforced the risk-off tone, with the DXY rising 3% since August 12. Bitcoin’s 60-day correlation with gold slipped to -0.47, indicating investors rotated into traditional safe havens as geopolitical uncertainty deepened amid stalled Ukraine peace talks.

Technical Breakdown Triggers Liquidations

The bearish backdrop was amplified by technical weakness. BTC fell below $118,859 support (23.6% Fibonacci retracement) and its 7-day SMA at $118,992, triggering momentum-driven selling. The MACD histogram flipped negative (-85.32), reflecting growing downside pressure.

Automated trading systems likely accelerated the decline, with $81 million in long positions liquidated. Traders now eye $114,500 (38.2% Fib level) as the next critical support. With the RSI at 47, Bitcoin retains room for further downside before entering oversold conditions.

Read More:

XRP ETF Countdown: SEC to Decide on 8 Filings in October

Whale Activity Adds Volatility

Large-wallet activity added another layer of uncertainty. A dormant whale moved 330 BTC ($39M) after more than 12 years, sparking speculation about profit-taking. Meanwhile, Japanese investment firm Metaplanet acquired 775 BTC ($93M), signaling continued institutional demand.

Exchange inflows spiked to 12,000 BTC per week, a level last seen ahead of November 2024’s correction. The Exchange Whale Ratio at 0.50 points to elevated sell-side risk, particularly as Bitcoin trades just below its recent all-time high.
Outlook

While institutional accumulation highlights long-term confidence, near-term risks remain skewed to the downside. Macro headwinds, fragile technicals, and profit-taking whales could keep Bitcoin under pressure until buyers reclaim $118,000 support.