Bitcoin News Today: Bitcoin Consolidates in $116K-$126K Range as September Correction Looms

Bitcoin remains within a defined trading channel, fluctuating between the $116,000 support level and the $126,000 resistance zone, with analysts warning of potential volatility as September approaches [1]. After a brief rally to $123,000, the price has pulled back to around $118,000, consolidating in a range that has persisted since mid-August [1]. This pattern has led to a growing consensus that a correction could follow before the market resumes its upward trajectory.

Technical indicators suggest that the price is locked within an ascending channel, characterized by repeated tests at key resistance levels, which have so far failed to break out [1]. Traders are closely watching this range, preparing for possible short setups at the upper bounds and renewed buying activity at the support levels. Analysts project that this sideways movement may continue until early September, after which a more pronounced correction is expected [1].

The correction is not seen as a sign of a long-term bearish trend but rather as a typical part of Bitcoin's price discovery process. According to historical data, the first correction after the 2024 halving lasted between six to eight weeks and saw Bitcoin drop nearly 30%. The second correction, expected to last five to seven weeks, could begin as early as week 7, aligning with the projected September timeframe [2].

Market sentiment is mixed, with some indicators showing bullish potential and others suggesting caution. For instance, Bitcoin’s SOPR (Spent Output Profit Ratio) remains above 1, indicating that short-term holders are still realizing profits, though the recent divergence between price highs and SOPR highs could signal a potential market reversal [2]. Additionally, the Hull Moving Average (9) and certain sub-indicators on TradingView have turned neutral or bearish, reinforcing the need for caution [2].

On-chain data provides further insight into market positioning. Larger wallets continue to accumulate Bitcoin, with no significant sell-offs detected to date [1]. Funding rates remain healthy, suggesting that the market is in a stable phase despite the looming volatility. However, a key catalyst outside the crypto space could trigger a shift in sentiment—Federal Reserve Chair Jerome Powell’s upcoming remarks on monetary policy are expected to add uncertainty to an already volatile market [1].

Analysts such as Lark Davis and Michaël van de Poppe have also warned of deeper corrections and increased market turbulence as the September window approaches [3]. The rising open interest in put contracts further supports bearish expectations, as traders hedge against the possibility of a downward move [2].

While Bitcoin’s dominance in the broader crypto market has weakened slightly, signaling a potential rotation into altcoins, the overall fundamental backdrop remains supportive of long-term bullishness. The coming weeks will be critical in determining whether the market continues to build momentum or enters a more structured correction phase [2]. Traders are advised to remain vigilant, particularly as key technical levels come under renewed test in the lead-up to September.

Source:

[1] https://cryptofrontnews.com/bitcoin-traders-brace-for-september-correction-after-range-bound-moves/

[2] https://www.blockhead.co/2025/08/18/halving-cycle-patterns-suggest-new-bitcoin-price-discovery-phase-underway/

[3] https://www.coindesk.com/markets/2025/08/17/bitcoin-steadies-at-usd118k-as-analysts-flag-deeper-pullback-risks-and-altcoin-rotation