Bitcoin News Today: Bitcoin Breaks Below $117,000 Triggering Short-Term Bearish Setup

Bitcoin’s price trajectory has drawn heightened scrutiny following its initial test and subsequent rejection of the $124,000 level, a key technical and psychological threshold. As of Aug. 16, 2025, the cryptocurrency traded at $117,509 with a market capitalization of $2.33 trillion and a 24-hour trading volume of $39.69 billion. The price fluctuated intraday between $116,956 and $119,152, reflecting market indecision and a lack of clear direction [2].

On the 1-hour chart, Bitcoin displayed bearish price action, characterized by a sequence of lower highs and lower lows after peaking at $119,336. A minor rebound at $116,856 occurred but failed to generate strong buying interest, as evidenced by low volume. A break below $117,000 triggered a short-term bearish setup, targeting the $116,000 level. A retest of the $118,500 to $119,000 range with robust volume could invalidate the short-term downtrend [2].

The 4-hour chart reflected a sharper sell-off from the $124,517 high to $116,856, after which the price entered a consolidation phase between $117,000 and $119,000. This range-bound movement suggests market participants are digesting recent gains. A breakout above $119,500 could signal a short-term rebound, with $121,000 as the next resistance level. Conversely, a breakdown below $116,500 on strong volume may accelerate a move toward the $114,000–$111,000 range [2].

The daily chart displayed a bearish engulfing candle after the swing high at $124,517, a classic pattern preceding potential trend reversals. The inability to maintain a position above $124,000, combined with volume spikes at the top, indicated distribution. The $117,000 level emerged as a critical support zone. A strong close above $119,000 with significant volume could reignite a bullish move; otherwise, the price may continue downward to the $114,000–$111,000 range [2].

Oscillator data painted a mixed picture. The RSI, Stochastic, CCI, ADX, and Awesome Oscillator all indicated neutral conditions, suggesting balanced momentum. However, the MACD diverged slightly, flashing a bullish signal that hints at potential mean reversion or a short-term correction if confirmed by price action. The momentum indicator remained bearish, issuing a sell signal [2].

Moving average analysis further highlighted divergence in the market’s outlook. Shorter-term averages, including the 10-period EMA and SMA, positioned above the current price, signaling bearish conditions. In contrast, mid- and long-term indicators such as the 30-period, 50-period, 100-period, and 200-period EMAs and SMAs all issued bullish signals. This contrast suggested that while the immediate trend is bearish, the broader technical environment remains supportive of an eventual upward move, contingent on a shift in momentum [2].

A bullish case hinges on Bitcoin reclaiming the $119,000 level with strong volume confirmation. A successful retest could trigger a short-term reversal and a potential rally toward the $122,000–$124,000 range. The bullish bias is further supported by the buy signal from the MACD and the alignment of longer-term moving averages in an upward direction [2].

Conversely, the bearish case remains intact due to the price’s inability to hold higher levels and the neutral-to-bearish signals from technical oscillators. A breakdown and close below $116,500 with elevated volume could open the door to a drop toward the $114,000–$111,000 range. Until Bitcoin decisively reclaims the $119,000 resistance zone, bearish momentum is expected to dominate in the near term [2].

Market participants are advised to monitor key support and resistance levels closely. A sustained break below $118,000 to $120,000 could invalidate the current bullish setup and lead to a deeper correction. On the other hand, a strong rebound above $124,000 could reignite the rally and extend the current upward trend [2].

Source: [1] Research – https://www.blockscholes.com/research

[2] Leap Digital Investments – https://leapdigitalinvestments.com.au/

[3] Solana Fear and Greed Index | Multiple Timeframes – https://cfgi.io/solana-fear-greed-index/