Bitcoin News Today: Bitcoin's Descent Sparks Debate: Is This the Bottom Before a Bigger Rally?

Bitcoin’s price has slipped to around $115,000 following a sharp correction after hitting a new all-time high of $124,496 in early August. The decline, which saw the cryptocurrency drop to as low as $114,706, was triggered by a combination of macroeconomic concerns, including elevated inflation data and uncertainty surrounding potential Federal Reserve rate cuts. The volatility has led to over $530 million in forced liquidations across the crypto market, with Bitcoin long positions accounting for $124 million of that total and Ethereum long positions for $184 million, according to CoinGlass data.

The recent pullback has sparked debate among traders and analysts about whether the correction is nearing its bottom. Several metrics suggest that Bitcoin may soon stabilize and potentially rebound. The Bitcoin options skew has risen to its highest level in four months, signaling heightened fear in the market. However, historical data shows that such spikes have often preceded strong buying opportunities. For example, a similar skew spike on August 5 was followed by a $9,657 rally within six days. The current skew of over 6% indicates that the market remains in a defensive posture, but not in a state of panic.

Bitcoin’s spot exchange-traded funds (ETFs), which have become a significant pillar of the market, also show mixed but encouraging signals. After a seven-day streak of inflows ended on Friday, the ETFs have remained stable, with no significant outflows observed. These funds represent a $152 billion market, and short-term inflows or outflows are expected given their size and the current environment of reduced volatility. The recent redemptions have not triggered a major breakdown in liquidity, suggesting the market remains resilient.

Top trader positioning on major exchanges like OKX and Binance also provides a bullish signal. While some traders reduced long positions in the wake of Bitcoin’s sharp decline, the long-to-short ratio has stabilized, indicating that institutional players are not aggressively cutting exposure. It is possible that some traders are waiting for a retest of the $112,000 level before committing further capital. This behavior aligns with historical patterns where Bitcoin tends to form double bottoms after significant corrections.

Stablecoin activity in China offers another perspective on market sentiment. Tether (USDT) is currently trading at a 0.8% discount against the Chinese yuan, reflecting some level of caution among retail investors. However, the discount has remained stable since Friday, suggesting that fear is not intensifying. In contrast, a stable or slightly bullish environment is typically associated with stablecoin premiums, which are absent here. This data point indicates that while there is some pressure to exit the market, it has not escalated into a broad exodus.

Taken together, these indicators—options skew, ETF flows, top trader positioning, and stablecoin demand—suggest that Bitcoin’s recent downturn is a temporary correction rather than the end of the current bull cycle. The market appears to be consolidating at a key support level, with the possibility of a recovery above $120,000 in the near term. The next few days will be crucial, with investors closely watching for signals from the upcoming Jackson Hole symposium and jobless claims data for further direction.

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[1] Was the Bitcoin price bottom $114.7K?: Data suggests it's time for a reversal (https://cointelegraph.com/news/was-the-bitcoin-price-bottom-dollar114-7k-data-suggests-it-s-time-for-a-reversal)

[2] Bitcoin sinks to $115000 after hitting its newest record, as ... (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[3] Bitcoin Price Settles at $115K After Trump-Zelenskyy ... (https://cryptopotato.com/bitcoin-price-settles-at-115k-after-trump-zelenskyy-meeting-okb-eyes-new-ath-market-watch/)