Bitcoin under pressure again: falling below $63,000 and signs of market weakness
On August 14, the leading cryptocurrency once again came under pressure, breaking down through the psychologically important level of $63,000. The continued decline brought the asset to lows last seen in early August. This movement confirms that the market is not yet ready for a sustained recovery, despite some positive macroeconomic signals.
At the time of the analysis, Bitcoin is trading around $62,600, showing a daily decline of 1.5%. Notably, Ethereum (ETH) is showing relative resilience, remaining almost unchanged near the $1,860 mark. This divergence between the market's flagship and the leading altcoin may indicate that capital is not leaving the market entirely, but rather being redistributed in anticipation of new triggers.
Institutional demand is weakening
A key worrying signal was that spot Bitcoin ETFs recorded a two-day streak of outflows for the first time since late July. On August 12 and 13, investors withdrew a total of $192 million. This suggests that institutional participants, who previously acted as a growth driver, are now preferring to lock in profits or reduce risks. A return to inflows in the coming sessions will be critically important for restoring bullish momentum.
The macroeconomic backdrop is not helping
The decline in Bitcoin is happening despite positive dynamics in stock indices, which reacted with gains to the Producer Price Index (PPI) data. The indicator fell to 4.7%, coming in better than analyst forecasts. However, the crypto market seems to be ignoring this news, highlighting its current dependence on internal liquidity and sentiment rather than traditional macroeconomic factors.
Despite the price decline, open interest in Bitcoin on Binance continues to grow since early July and now stands at $27.09 billion. This creates a dangerous imbalance: weak spot demand is combined with high levels of leverage in the futures market. As analysts note, when positive news does not lead to growth, leveraged positions become vulnerable, and the market risks facing a cascade of liquidations.
An additional factor of pressure is the potential supply overhang in the area of the short-term holder cost basis around $68,700. This means that a significant portion of investors who bought the asset at the peak may seek to break even at the slightest bounce, limiting upside potential.
My comment: The current situation resembles a classic consolidation phase after a sharp move. Until we see a sustained return of ETF inflows and growth in spot volumes, any recovery attempts will be viewed with caution by the market. In the short term, a retest of the $58,500 level, which analysts previously warned about, cannot be ruled out, and it is this range that will become the key test of strength for the bulls.