Bitcoin News Today: Bitcoin's Fate Hinges on $118K: A Threshold of Bullish Hope

The recent fluctuations in Bitcoin’s price have sparked renewed interest in whether the cryptocurrency is undergoing a significant trend shift. Following a brief dip below $112,000 on August 21, the price of Bitcoin showed signs of recovery in the wake of comments by U.S. Federal Reserve (Fed) Chair Jerome Powell on August 22. Despite this partial rebound, the cryptocurrency remains below its July peak of $123,800 and has struggled to regain bullish momentum. Analysts are now closely monitoring the $118,000 level, which has been identified as a potential key threshold for a sustained recovery.

On-chain analyst Ali Martinez, in an August 23 post on the X platform, emphasized the strategic importance of the $118,000 price point for Bitcoin. According to Martinez, the cryptocurrency must reclaim this level to re-enter a bullish trajectory. This assessment is based on the Glassnode MVRV (Market Value to Realized Value) Momentum indicator, a tool used to gauge macro market trends. The MVRV metric combines the MVRV ratio with a 70-day simple moving average (SMA), providing insights into whether the market is in a bullish or bearish phase. Martinez highlighted that a breakout above the 70-day SMA typically signals a shift to bullish conditions, while a drop below it indicates a bearish trend.

The MVRV momentum indicator has proven to be a reliable tool in identifying market turning points. Strong breaks above the 70-day SMA indicate that large volumes of Bitcoin were purchased below the current price, suggesting that holders are now in profit. Conversely, a strong breach below the SMA implies that a significant amount of Bitcoin was bought above the current price, leaving holders in the red. Martinez observed that Bitcoin’s current position near this critical threshold suggests the market is at a pivotal moment.

At the time of the analysis, Bitcoin was trading at approximately $116,217, showing a slight increase of over 2% in the past 24 hours. However, on a weekly basis, the cryptocurrency remains down by more than 1%, reflecting the ongoing bearish pressures. Investors and traders are now watching closely to see whether Bitcoin can breach the $118,000 level and maintain it to confirm a return to bullish momentum. Failure to do so could signal the continuation of a bearish phase, reinforcing the need for strategic risk management in the current volatile environment.

Given the historical significance of the MVRV momentum indicator, its current alignment with the $118,000 level underscores the potential for a trend shift. If Bitcoin manages to reclaim and sustain this level, it could trigger broader market optimism and attract new institutional interest. However, until a decisive move above the 70-day SMA occurs, the market remains in a state of uncertainty, with cautious positioning likely to persist among traders.

The evolving price action and analytical signals highlight the delicate balance between bullish and bearish forces in the Bitcoin market. With the MVRV momentum indicator suggesting a possible turning point, all eyes are now on the $118,000 level to determine the next phase of Bitcoin’s trajectory.

Source: [1] Bitcoin Price In A Trend Shift? Here's Why $118K Might Be ... (https://www.mitrade.com/insights/news/live-news/article-3-1064020-20250824) [2] Bitcoin Price In A Trend Shift? Here's Why $118K Might Be ... (https://www.newsbtc.com/news/bitcoin/bitcoin-price-in-a-trend-shift-why-118k/)