Bitcoin News Today: Bitcoin Consolidates Near $118,400 Amid Trump’s Crypto 401(k) Policy Shift

Bitcoin’s price movement remains in a consolidation phase following its failed attempt to break above the $122,000 psychological level. As of August 12, 2025, the cryptocurrency was trading at around $118,400, with a stable market capitalization of approximately $2.35 trillion. The rejection at $122K has triggered caution among traders, who are closely monitoring the asset’s ability to retest and hold key support and resistance levels. The 4-hour chart shows that Bitcoin has been forming higher lows and moving within a tightening range between $112,000 and $115,000 [1].

Technical indicators such as the RSI and MACD suggest that the market is building momentum for a potential breakout. However, volume remains a key factor to watch, as it could determine whether the price sustains a move higher or faces another pullback. On the 4-hour chart, Bitcoin is currently retesting its critical support level at $112,000, which has held during recent dips [3]. A breakout above $118,000 with strong volume could trigger a rally toward $120,500 and $125,000, but a failure to maintain this level may result in a decline to $108,500 [4].

The broader cryptocurrency market has also shown signs of shifting capital from Bitcoin to altcoins, as Bitcoin’s dominance fell to 59.6%. Ethereum, in particular, has seen robust performance, breaking on-chain activity records and rising above $4,300. This movement reflects a broader trend of capital rotation and increased institutional interest in the second-largest cryptocurrency. Reports indicate that crypto-related ETFs are seeing higher inflows, with strategic accumulation by major players playing a role in Ethereum’s strength [2].

A major driver influencing Bitcoin’s recent price behavior is the anticipated executive order from U.S. President Donald Trump, which will permit cryptocurrencies to be included in 401(k) retirement plans. This policy shift is seen as a pivotal moment for crypto adoption, potentially unlocking significant institutional investment. Analysts estimate that even a 1% allocation of the $7.5 trillion in U.S. 401(k) plans could result in substantial inflows into the crypto market [3]. The executive order also underscores Trump’s broader pro-crypto agenda, including efforts to reduce regulatory barriers and challenge traditional financial structures [4].

Long-term holder (LTH) selloff activity has recently cooled, reducing selling pressure on Bitcoin and contributing to a more stable price environment. This trend indicates that market participants are adopting a more strategic approach, with many waiting for clearer signals before committing to larger positions. The easing of LTH selloffs has coincided with a broader market consolidation, highlighting a more measured sentiment in the space [5].

Bitcoin’s recent price action has been influenced by Ethereum’s performance. The 3.76% increase in BTC from 4 p.m. ET on Friday was partly driven by Ethereum’s rally, which has pulled Bitcoin along in recent sessions [6]. This dynamic underscores the evolving relationships between major cryptocurrencies and the importance of diversification strategies among traders.

In summary, Bitcoin remains in a critical phase of consolidation both technically and fundamentally. The U.S. government’s move to include crypto in retirement plans has set the stage for a potential new wave of institutional adoption. However, a decisive breakout from the current trading range is still pending, with traders keeping a close eye on key levels and macroeconomic developments that could shift market dynamics. For now, the focus remains on technical indicators and the unfolding of policy developments that may redefine the trajectory of Bitcoin and the broader crypto market.

Sources:

[1] https://tradersunion.com/news/cryptocurrency-news/show/430960-crypto-market-recap-bitcoin-dominance-dips

[2] https://www.btcmarkets.net/blog/ethereum-breaks-onchain-activity-record-as-bitcoin-pushes-past-us122k

[3] https://cryptorank.io/news/feed/2de28-bitcoin-price-prediction-trump-crypto-401k-executive-order

[4] https://www.bitget.com/news/detail/12560604906825

[5] https://coinjournal.net/news/bitcoin-price-forecast-btc-price-steadies-as-long-term-holder-selloff-cools/

[6] https://www.coindesk.com/daybook-us/2025/08/11/ether-s-rally-pulls-bitcoin-along-crypto-daybook-americas