Bitcoin News Today: Bitcoin retreats below $116,000 amid $500M liquidations and profit-taking pressure

Bitcoin continues to face profit-taking pressure on August 18, 2025, as its price retreats to $116,034.88 from a recent peak, reflecting heightened volatility amid mixed market sentiment [1]. The decline follows a sharp pullback below the $115,000 level earlier in the week, which triggered over $500 million in liquidations and raised concerns about investor confidence [2]. The broader crypto market has also seen a wave of selling, with altcoins such as XRP and FTT experiencing notable downward movements [3][4].

The ongoing correction suggests a period of consolidation, with traders assessing key support and resistance levels. Bitcoin is currently testing critical support near $116,000 to $120,000, and a break below this range could signal further downward momentum [1]. A bearish engulfing pattern observed in Bitcoin’s price action during the week, coupled with STH liquidations totaling 16,800 BTC, indicates increased selling pressure. However, these levels remain above historical panic thresholds, suggesting the market is not in a state of full capitulation [5].

Market sentiment remains divided, with technical indicators providing mixed signals. Bitcoin’s RSI stands at 47, suggesting neutrality and potential for movement in either direction [1]. Meanwhile, Ethereum’s ADX reading of 46 points to a strong ongoing uptrend despite a 3.5% drop in recent sessions [1]. Traders remain cautiously optimistic, particularly regarding Ethereum’s long-term prospects, with many expecting the asset to hit new all-time highs by 2025 [1].

The correction in Bitcoin has also affected its related assets. Bitcoin-linked stocks showed mixed performance in pre-market trading on August 11, reflecting broader market weakness [6]. XRP, in particular, has shown signs of vulnerability after dropping below the $3 level, with traders divided on its future trajectory [1].

Macro factors continue to play a pivotal role in shaping market dynamics. Inflation concerns and uncertainty around central bank decisions have led to a broader pullback in risk assets [7]. Investors remain closely watching for key economic data releases, including those from the Federal Reserve, which could influence the direction of both traditional and crypto markets [2]. The interplay between these macroeconomic forces and technical price levels has heightened caution among traders.

Despite the recent downturn, some analysts and traders view the current correction as a potential buying opportunity, especially given Bitcoin’s historical resilience in similar conditions [5]. However, mixed signals from indicators like the RSI and MACD suggest that further consolidation—or even deeper corrections—cannot be ruled out [5]. Investors are advised to remain alert to developments in both the crypto and traditional markets, as cross-asset correlations are becoming increasingly significant.

The market is also digesting recent developments such as token unlocks and broader crypto-related events, which could introduce additional volatility in the near term [8]. As the week progresses, focus remains on whether Bitcoin can stabilize around key support levels or if continued selling pressure will push it further downward.

Source:

[1] https://m.economictimes.com/crypto-news-today-live-18-aug-2025/liveblog/123350562.cms

[2] https://m.economictimes.com/news/international/us/bitcoin-crashes-to-115000-after-record-high-as-500-million-liquidation-shock-hits-crypto/articleshow/123367214.cms

[3] https://www.financemagnates.com/trending/why-xrp-is-going-down-xrp-price-drops-5-as-bitcoin-and-ethereum-retreat-amid-heavy-crypto-profit-taking/

[4] https://blockchain.news/news/20250818-ftx-token-ftt-faces-bearish-pressure-at-091-as-technical

[5] https://www.ainvest.com/news/bitcoin-correction-inflation-concerns-buying-opportunity-warning-sign-2508/

[6] https://stocktwits.com/news-articles/markets/cryptocurrency/bitcoin-slips-under-116000-while-cardano-solana-lead-altcoin-selloff/chsO7iYRdQw

[7] https://www.fxleaders.com/news/2025/08/18/forex-signals-brief-aug-18-from-powell-to-walmart-and-panw-earnings-this-week/

[8] https://www.ainvest.com/news/bitcoin-news-today-15-altcoins-face-major-token-unlocks-week-market-shares-22-20-2508/