Bitcoin News Today: Bitcoin Bulls Weather the Storm as Market Holds Key Support Levels Ahead of Jackson Hole

Bitcoin's price, which reached an all-time high of $124,000 in early August, has since dropped to around $115,000, marking a 7% decline in just weeks [1]. This correction has led to heightened speculation about whether the bull market has topped, prompting analysts to examine the underlying dynamics shaping the market. While the decline has triggered liquidations and profit-taking, key metrics suggest the broader bullish trend remains intact [2].

The drop has been attributed to a combination of factors, including heavy leveraged positions, widespread profit-taking, and uncertainty surrounding U.S. Federal Reserve policy. The market has seen over $1 billion in liquidations, with 95% of these stemming from long positions, as traders scrambled to unwind overleveraged bets following Bitcoin’s peak [1]. Ethereum and other major cryptocurrencies also experienced significant losses, with the broader crypto market losing over $250 billion in value since the beginning of August [1].

Despite the decline, Bitcoin remains above critical support levels, including the 50-day and 100-day moving averages, which have historically acted as strong indicators of market resilience [2]. Long-term holders (LTHs) have shown little urgency to sell, with data indicating they are increasing their Bitcoin holdings, a sign of confidence in future price appreciation. On-chain activity suggests the market is in a consolidation phase rather than a structural bearish shift [2].

The Federal Reserve’s upcoming policy decisions, particularly during its Jackson Hole symposium, will play a pivotal role in shaping Bitcoin’s near-term trajectory. Recent shifts in market sentiment have caused the probability of a September rate cut to drop from 88% to 74%, as inflation and employment data have deviated from earlier expectations [1]. Analysts caution that any hints of a delayed easing cycle could tighten financial conditions, adversely affecting risk assets like Bitcoin. Conversely, a confirmation of aggressive rate cuts could reinvigorate investor sentiment and restore upward momentum.

Technical indicators also support the notion that Bitcoin remains on a bullish trajectory. The price is currently forming a potential base around $112,000, reinforced by key Fibonacci retracement levels [2]. Moreover, the 200-day moving average remains intact near $103,000, forming a foundational support zone for further accumulation. While a break below this level would raise bearish concerns, most indicators suggest the market is positioning itself for a rebound.

Bitcoin’s performance is closely aligned with broader macroeconomic trends, particularly the U.S. equity market. The S&P 500 has also experienced a retracement following its recent highs, mirroring Bitcoin’s pullback. This correlation underscores the influence of global liquidity conditions and investor risk appetite on crypto asset performance [2]. As global M2 money supply growth stagnates, the flow of fiat liquidity into speculative markets like Bitcoin is expected to remain constrained until central banks shift policy.

Despite the near-term volatility, long-term fundamentals remain robust. Institutional demand, particularly through ETFs, has not reversed, though inflows have slowed compared to the peak. Whale accumulation continues, with large holders increasing their BTC holdings by over 218,000 since March [1]. This suggests sustained demand from major investors who are likely viewing the current pullback as an accumulation opportunity rather than a bearish signal.

In summary, while the recent Bitcoin price correction has raised concerns, the evidence points to a healthy market consolidation rather than a cyclical top. Long-term holder confidence, supportive technical levels, and the absence of a major liquidity shock suggest the bull market is far from over. The coming weeks will be critical, as the Federal Reserve’s policy decisions and broader macroeconomic trends will determine whether Bitcoin regains its upward momentum or faces further consolidation [2].

Source:

[1] Bitcoin Price Crash Fears Gather As Crypto Braces For A ... (https://www.forbes.com/sites/digital-assets/2025/08/19/wall-street-issues-serious-66-trillion-crypto-warning-as-price-crash-fears-hit-bitcoin-ethereum-and-xrp/)

[2] Bitcoin Price Is Going Down as Market Stress Tests Bulls Before Jackson Hole (https://www.financemagnates.com/trending/bitcoin-price-is-going-down-as-market-stress-tests-bulls-before-jackson-hole)