BTC Holds Firm at $113k Amid Cooling Demand - Is a Deeper Correction Looming?

Bitcoin's bull run hits a wall as demand cools—price action stalls at the $113k level while indicators flash warning signs.

The Cooling Phase

Trading volumes dip, whale activity slows, and leveraged positions get unwound. Market sentiment shifts from 'buy the dip' to 'wait and see' as institutional inflows taper off.

Technical Breakdown

Support at $113k looks fragile. A break below could trigger cascading liquidations—especially with so many over-leveraged traders still dreaming of Lambos and early retirement.

Macro Whispers

Traditional finance pundits—who still think 'blockchain' is a type of ski binding—are suddenly experts on crypto volatility. Meanwhile, Bitcoin keeps doing what it does best: ignoring them.

Bottom line: markets breathe in, markets breathe out. This isn't a crash—it's a recalibration. Time to see who's actually hodling and who just liked the idea of being rich.

CoinGlass data shows open interest in Bitcoin has slipped 0.36% to $37.9 billion over the past 24 hours, with most of the decline coming from perpetual futures. At the same time, 24-hour trading volume fell 7.32% to $66.41 billion, reflecting cooling market activity.

Falling volume alongside a drop in open interest suggests traders are trimming positions, indicating that the market in a cautious pause.

Bitcoin demand slows as profit-taking continues

The weakness in Bitcoin’s price comes amid a broader trend of falling demand and ongoing profit-taking. According to an Aug. 20 CryptoQuant analysis, the amount of bitcoin being accumulated by the market has dropped sharply in recent months, down two-thirds from 174,000 BTC in July to 59,000 BTC currently.

Institutional buying is also slowing. Bitcoin exchange-traded funds‘ net purchases over the past month is at a modest 11,000 BTC, the lowest since April. Similarly, corporate accumulation by major holders has slowed, with buying by entities like Strategy falling from 171,000 BTC in November 2024 to 27,000 BTC in the last 30 days.

Bitcoin demand is fading.

Apparent demand dropped from 174K BTC in July to just 59K today.

ETF buying also hit a 4-month low, while MSTR slowed sharply.

Weak demand growth points to more consolidation ahead. pic.twitter.com/61Fw6HewEF

Meanwhile, profit-taking is ramping up among short and long-term investors. BTC holders have realized roughly $74 billion in net profits since July 4, alongside another $2 billion taken by new whale investors. Such large-scale profit-taking adds downward pressure on prices, increasing short-term volatility.

CryptoQuant’s Bull Score now shows the market moving from “Extra Bullish” to a “Bullish Cooldown” phase, signaling that while the overall market set up remains positive, strong momentum has faded. 

However, strong downside risk appears limited for now. The analysis added that BTC could find support around $110K, as holders are usually less likely to sell heavily around this price point, which can help prevent a sharper decline.

Still, the market remains cautious. If demand fails to return and profit-taking continues, Bitcoin may struggle to regain momentum, and the current bearish signals will need to flip positive before strong upward moves can resume.