Bitcoin Faces $115K Support Pressure amid US Inflation
Bitcoin fell 2.4% on August 18, dropping to a low of $115,222 after US producer price index (PPI) data beat expectations. The pullback halted the rally from last week’s record high of $124,128 as elevated inflation data cooled hopes for a Fed rate cut. Bitcoin now trades near a critical $115,000–$112,500 support zone, with a breach risking a drop to $110,000. Ethereum declined 4.3% to $4,287, while Chainlink bucked the trend with a 1% gain. The crypto market’s Fear & Greed Index stands at 56, signaling neutral sentiment. Spot ETF flows point to rotation rather than outright exit: inflows into BlackRock’s IBIT offset outflows from Grayscale and ARK Bitcoin ETFs. Key catalysts this week include the Jackson Hole symposium on August 22 and US initial jobless claims on August 21. Traders will focus on Fed Chair Powell’s remarks for clues on rate policy. Bitcoin support levels and ETF activity remain essential triggers for short-term trading.
Bearish
The bearish view stems from stronger-than-expected US inflation data (PPI) that undercut rate-cut optimism, triggering a 2.4% pullback in Bitcoin and testing the $115,000 support. Historically, similar PPI surprises—in July’s case—halted rallies and led to further corrections. Although spot ETF inflows into products like BlackRock’s IBIT suggest rotation, they have not fully countered downward pressure. In the short term, traders may remain cautious, amplifying volatility if key supports fail. Over the long term, ETF adoption and macro clarity could provide a floor, but immediate momentum favors bears until fresh bullish catalysts emerge.