- Bitcoin remains range-bound between the $116K–$120K zone amid further institutional inflows, as long as the news remains bullish.
- Ethereum’s persistence to break through $4K remains tenuous, with momentum indicators cooling and short-run price strength waning.
- Heavy short positions in USDJPY may trigger a U.S. Dollar rebound, leading to possible risk-off flows across crypto and equity markets.
Bitcoin’s trading pattern remains in a tight range between $116,000 – $120,000, and Ethereum appears to be showing slowing momentum around the critical $4,000 mark. Even while institutional support seems stable and positive news surrounding regulation continues to flow, the market simply does not appear to have the energy to move to the upside.
Bitcoin Stuck in Tight Range, Ethereum Faces Resistance
QCP Capital reports that Bitcoin continues to face resistance just below the $120,000 mark, while buyers are providing good support at the $116,000 level. Ethereum is struggling to maintain any momentum close to the $4,000 level.
This stagnation comes even as the market is receiving a series of positive headlines—the U.S. continues to approve crypto-supportive regulation and further ETF-related developments. Price action remains suppressed. That lack of reaction is starting to raise concerns among traders. When prices don’t move on good news, it often points to fatigue in the current trend.
Ethereum’s momentum indicators are also weakening, with buyers showing less confidence near resistance. This kind of behavior typically suggests that markets may need more time—or a stronger catalyst—before the next move.
Institutions Still Accumulating, But Market Looks Cautious
Despite the slow price movement, institutions aren’t stepping back. MicroStrategy (MSTR) and SharpLink Gaming (SBET) are still actively raising funds to increase their Bitcoin holdings, showing a clear long-term commitment.
Additionally, there is growing confidence in regulatory clarity. Recent actions taken by U.S. legislators have resulted in a lessening of uncertainty that weighed on many digital assets. Yet, that has still not been enough to provide any upward impetus to prices. It appears that the traders are now in wait/see mode again with several major macro events on the calendar.
The representational dislocation between stabilizing fundamentals and flat prices is keeping many traders on the sidelines in the short term, even with the broader picture looking constructive.
Global Macro Risks Weigh on Market Sentiment
Beyond crypto, the global backdrop is playing a key role. The U.S. Dollar is down around 10% so far this year, largely due to the ongoing tariff tensions. But with such a sharp decline already priced in, some analysts are warning that a reversal—or at least a pause—could be coming.
The CFTC reports that traders are heavily shorting the dollar, especially against the Japanese yen. If it unwinds, a dollar rebound might lead to risk-off selling across markets, including crypto.
With the Federal Reserve expected to stay put on rates at its next meeting, eyes are turning toward U.S. inflation and jobs data due out in the next few weeks. These will couple with overall markets to determine if the Fed leans toward a rate cut in September. Until then, we could see Bitcoin and Ethereum drift sideways, waiting for more clearer economic direction.
