Bitcoin entered August under selling pressure after retreating from July's peak of $66,900. The cryptocurrency traded near $63,000 after briefly slipping below that level, with sellers now testing the $63,150 Fibonacci support—a threshold that separates consolidation from a deeper pullback. A daily close below this point could expose $62,000 and subsequently $60,000.

Despite the price weakness, July's institutional flow picture remained positive. US spot Bitcoin ETFs collected approximately $172.4 million in net inflows during the month, even after heavy selling in the final trading sessions. Since their approval in January 2024, these funds have become a primary conduit for institutional Bitcoin exposure, making monthly flow data a closely watched gauge of demand from asset managers, pension funds, and other large allocators. The July figures suggest these investors reduced exposure selectively rather than abandoning Bitcoin entirely.

Bitcoin traded near $62,979 early Saturday, with an intraday low around $62,426. To ease short-term pressure, the price must reclaim $64,000. The next significant resistance zone sits between $65,000 and $66,000.

ETF Demand Survives Late-Month Selling

Bitcoin ETFs recorded a $265.4 million net outflow on July 31. BlackRock's IBIT led withdrawals with $122.7 million, followed by Fidelity's FBTC at $54.8 million and GBTC at $52.6 million. Bitwise and ARK products also saw smaller withdrawals.

JUST IN: Bitcoin ETFs finished July in the green. Despite late-month selling, US spot Bitcoin ETFs still recorded $172.4M in inflows. The interesting part: Institutions are not stepping away from Bitcoin. They are still positioning, even while price remains stuck below major… pic.twitter.com/F7IOSkOxLT — That Martini Guy ₿ (@MartiniGuyYT) August 1, 2026

Even so, the full-month balance stayed positive. That contrast is notable because the late-month selling followed several strong inflow sessions: July 20 brought $226.8 million, July 21 added $203.2 million, and funds attracted $233.1 million on July 30.

The monthly result indicates institutions continue using market weakness to adjust positions. However, positive ETF flows do not guarantee an immediate price rebound. While ETF inflows can support demand, derivatives activity and macroeconomic conditions often drive shorter-term price movements. Bitcoin has historically responded to US economic data releases and Federal Reserve policy signals, which can shift risk appetite across asset classes.

Momentum Indicators Favor Sellers

Technical momentum indicators currently tilt bearish. The daily relative strength index sits near 45, below its recent average. The daily MACD has crossed lower, with its histogram moving into negative territory.

The four-hour chart also reveals weakening capital flow. Chaikin Money Flow fell to minus 0.22, suggesting persistent distribution. Bitcoin trades below the Bollinger midpoint near $63,886, with the lower band around $62,489 now serving as immediate support.

Liquidation clusters further define these levels. Leveraged long positions concentrate near $62,000, while short exposure builds between $65,000 and $66,000. A downside sweep could trigger forced selling before buyers attempt another recovery.

Policy uncertainty adds another layer of risk. The US Senate has limited time before its August recess, and the CLARITY Act—a market structure bill that would delineate regulatory jurisdiction between the CFTC and SEC for digital assets—still requires bipartisan support. Prediction markets reflect reduced confidence in passage during 2026.

BTC Dominance Weakens Amid Altseason Speculation

BTC dominance has drawn attention following a weekly trendline breakdown and a failed retest. According to market data, the measure stands near 58.95%, though dominance readings vary across platforms because providers calculate the broader crypto market cap differently.

The bearish dominance setup has fueled growing altseason expectations. Traders often interpret falling BTC dominance as capital rotating toward Ethereum and smaller tokens. Similar declines accompanied major altcoin rallies in 2018 and 2021.

Nevertheless, a dominance breakdown alone cannot confirm a broad altseason. Altcoins continue losing ground while Bitcoin chops below its 21-day moving average. A genuine rotation would require stronger market breadth, improving liquidity, and sustained gains across multiple sectors.

Very boring state of mind with #Bitcoin , as it's chopping around and #Altcoins generally continue to fall. It's not holding above the 21-Day MA, and therefore, the risk of another sweep of the lows have increased. Other than that, it's been the last day of the month, and it's… pic.twitter.com/4Hg3Px3AdD — Michaël van de Poppe (@CryptoMichNL) August 1, 2026

Key Price Levels to Watch

Bitcoin's price remains the market anchor. Holding above $60,000 would preserve a higher low against June's $57,884 bottom—a structure that would also support the bullish divergence highlighted by some traders.

A recovery begins with reclaiming the four-hour midpoint near $63,886. Clearing $64,000 could open the path toward $65,000 and the upper Bollinger band near $65,284. Stronger momentum would then target $65,800 to $66,000.

The broader breakout remains incomplete below July's $66,900 high. Buyers must also clear the $67,284 Fibonacci level. Failure at $63,150 would instead expose $62,000, with the next downside levels at $60,000 and June's $57,884 low.