Bitcoin (BTC) prices have been locked in medium-term correction mode since last week it reached an all-time high of around 124.4k. Prices are testing a key support zone of $112,000, the level analysts consider to be a key line of sand in the current bull market.
On the daily chart, the combination of potential double-top formations and bearish RSI differences suggests that sellers have the advantage and that $120,000 resistance has proven to be a formidable barrier. But the questions about the mind of every trader are simple: Why is Bitcoin having a hard time?
From another perspective, the BTC/USD pair could form a horizontal integration ranging from $112,108 to $123,500. Horizontal integration will be disabled if BTC prices are consistently closed over the next few days.
Why is Bitcoin price struggling to maintain bullish sentiment?
Rising capital turnover into Altcoins
The main headwind of Bitcoin appears to be a significant turn of capital into the Altcoin market. This is not just speculation. The data draws clear pictures. On-chain analysis shows that key players are moving funds from Bitcoin to assets like Ethereum.
For example, Sosovalue’s market data reported that BlackRock’s Spot Bitcoin ETF (IBIT) saw a $127.5 million spill on Wednesday, while its Ethereum ETF (ETHA) was covered with a $233.6 million inflow on the same day.
This trend is also reflected in whale activity. Lookonchain tracked the wallet of a seven-year-old whale, sold some of its massive Bitcoin Holdings to buy over 62,000 ETH, and quickly opened a long position of $577 million. Hunting for a higher return seems to lead investors to believe The September Altcoin season has been confirmed, with two giant catalysts on the horizon.
Bitcoin OG, which received $100,784 ($642 million) seven years ago, recently ended dormant. I bought the $62,914 ETH ($267M) spot and sold $BTC while opening a massive $135,265 ETH ($577M) length position.
I found another Bitcoin og to deposit $btc into #hyperliquid and sell it to buy…pic.twitter.com/qhebn276lf
– lookonchain (@lookonchain) August 22, 2025
Inflation fear adds to pressure
It is persistent macroeconomic fear in the United States to exacerbate the problem. This week, claims of hotter than expected unemployment weakened hopes for an imminent Fed rate cut. According to the Kalshi forecast market, the probability of a 25 bps rate reduction in September is currently slipping to around 59%.
Traders are currently awaiting a speech by Fed Chairman Jerome Powell at the Jackson Hole Symposium for any signal on the Fed’s next move. This uncertainty is to keep risk aversion capital on the sidelines and put pressure on the price of Bitcoin.
What analysts see next
According to Crypto analyst Michaël Vande Poppe, BTC Price is approaching a critical support level of around $112,000, potentially bringing new bull rally towards the new ATH.
#bitcoin got its last low but still not all low.
A tricky era.
Before the actual movement begins, you won’t be surprised by the unstable movements on either side to wipe out all the fluidity. Typical Fed event behavior.
This area is there to accumulate. pic.twitter.com/cm2w4yj7te
– Mycal Van de Poppe (@cryptomichnl) August 22, 2025
However, he warns that Bitcoin must play 116.8k again soon to disable the bearish scenario. Otherwise, it could open the door to a deeper fix towards a $100,000 level in the coming weeks. For a closer look at the immediate price action, check out the latest ones Bitcoin (BTC) price forecast for August 23rd.
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