Bitcoin News Today: Bitcoin Price Dips 7% Amid Broken Trendlines and Bearish Momentum Signals

Bitcoin faces mounting technical headwinds as the price retreats from recent record highs, with key trendlines and momentum indicators suggesting a shift toward bearish sentiment. After surging above $124,000 earlier in the week, BTC has since lost over 7%, settling at around $115,053.87 as of the latest data [1]. The decline has sparked concerns among traders and analysts, particularly as Bitcoin struggles to reclaim critical levels that had previously acted as strong support or resistance.

One of the key technical concerns is the breakdown below the long-term bullish trendline that has connected the major bull market highs of 2017 and 2021. This trendline, a significant psychological and structural level for long-term buyers, has now been penetrated, raising the likelihood of further downward pressure. On the weekly chart, Bitcoin’s failure to maintain a foothold above $122,056—the Fibonacci golden ratio—further underscores the weakening of bullish momentum [1].

The weekly stochastic oscillator has also rolled over from the overbought region above 80, a classic technical signal that often precedes corrections. This development suggests that the recent rally may have exhausted its immediate upward momentum, prompting traders to reassess their positions [1]. The bearish sentiment is compounded by the formation of a bearish outside-day candle on the daily chart, which is traditionally seen as a sign of seller dominance and a potential turning point in price action [1].

On the daily chart, Bitcoin has fallen below the bullish trendline drawn from April’s lows, signaling another critical breakdown. This move opens the door for a retest of the $111,982 level, which marked a previous turning point in late July and early August. If that level fails, the next major support is expected to be the 200-day simple moving average at approximately $100,000 [1].

Traders are now closely watching for any signs of a reversal back above $118,600—the high of Sunday’s trading session—which could temporarily alleviate bearish concerns. However, in the absence of a strong rally above key resistance levels such as $120,000 and $122,056, the case for a deeper correction remains intact.

Overall, the combination of broken trendlines, bearish candlestick patterns, and deteriorating momentum indicators points to a precarious position for Bitcoin in the short to medium term. With the weekly stochastic signaling a potential correction, market participants are advised to remain cautious and monitor key support and resistance levels for further directional clues.

Source: [1] Bitcoin in Precarious Position as BTC Price Penetrates Bullish Trendline Technical indicators suggest a bearish shift, with the weekly stochastic oscillator signaling a possible correction. (https://www.coindesk.com/markets/2025/08/18/btc-in-precarious-position-as-prices-penetrate-bullish-trendline)