Bitcoin News Today: Bitcoin's Fragile Rally Hinges on $115K as $1.1B Liquidation Looms

Bitcoin has retreated to the $115,000 level, following a significant price correction that has triggered substantial short liquidation pressure. According to current data, if Bitcoin surpasses $115,000, the cumulative short liquidation pressure on mainstream centralized exchanges (CEX) will reach $1.122 billion. This development highlights the market’s current sensitivity to price swings and the fragility of leveraged positions.

The recent decline in Bitcoin’s price saw over $500 million in long positions liquidated within a 24-hour period, as the cryptocurrency dropped from above $118,000 to $115,303 by early August 18, 2025. Ethereum followed a similar trajectory, falling nearly 4% to $4,270. The broader crypto market experienced widespread declines, with more than $1 billion in liquidations reported across decentralized finance (DeFi) platforms and leveraged positions. According to analysts at Matrixport, the drop below the long-term downtrend line could test the $112,000 level before the September Federal Reserve meeting provides clarity on monetary policy.

This volatility has been attributed to several factors. First, expectations of aggressive rate cuts by the Fed had previously driven Bitcoin’s price higher, but recent inflation data has weakened these expectations. The market now anticipates a smaller 25 basis point cut, with probabilities adjusted accordingly. The Jackson Hole Economic Symposium is seen as a key event that could influence market sentiment, though it is more likely to serve as a discussion forum than a catalyst for immediate action.

Geopolitical uncertainties, particularly the ongoing situation in Ukraine and the possibility of sanctions on Russian crude oil, have also contributed to the risk-off environment. This, combined with broader macroeconomic concerns, has caused traders to reassess their exposure to high-risk assets like Bitcoin and Ethereum.

On-chain data from platforms such as CoinGlass reveals that over 123,836 traders were liquidated within 24 hours, with Ethereum traders bearing the brunt of the losses, totaling $212 million. Solana, XRP, and Dogecoin also saw significant liquidations, indicating a broad-based market correction. The concentration of liquidation pressure near key support levels, such as $112,000 for Bitcoin, suggests that the market remains in a consolidation phase, with potential for further volatility.

Technical analysis by Matrixport suggests that Bitcoin is currently in a no-man’s-land between $112,000 and $117,292. Traders are presented with two primary strategies: buying strength on a breakout above $117,292 or waiting to accumulate closer to the $112,000 level. The 50-day exponential moving average (EMA) remains intact at $115,046, offering some support for the price. However, a breakdown below this level could expose Bitcoin to further downward pressure.

Investor sentiment has also been affected by recent developments in the U.S. government’s Bitcoin strategy. Treasury Secretary Scott Bessent clarified that the Bitcoin strategic reserve will be limited to government-seized coins, a move described as fiscally neutral. This has contributed to cautious behavior among investors, especially as the market awaits the outcome of the Jackson Hole symposium.

Meanwhile, institutional demand remains a stabilizing factor. Despite a net outflow from Bitcoin and Ethereum ETFs on August 16, the week ended with record inflows into Ethereum and modest inflows into Bitcoin. This suggests that long-term buyers continue to see value in the asset, particularly as prices dip near historically significant levels. CryptoQuant data on long-term holder (LTH) profitability shows that current levels remain positive but moderate, indicating manageable selling pressure.

Looking ahead, the focus remains on macroeconomic signals and the Federal Reserve’s next move. If Bitcoin holds above $115,000, a potential rebound toward $120,000 could be on the horizon. However, a breakdown below $112,000 would likely trigger a deeper correction. For Ethereum, the immediate support at $4,300 will be closely watched, with a further decline possible if this level fails to hold.

In summary, the current environment for Bitcoin and Ethereum reflects a mix of profit-taking, leveraged position unwinding, and uncertainty around macroeconomic conditions. While short-term volatility remains high, the fundamental drivers—such as institutional adoption and ETF flows—suggest that the market has not lost its long-term bullish momentum. Traders and investors are advised to remain cautious and monitor key levels and macroeconomic developments for potential turning points.

Source:

[1] title1 (https://cryptoslate.com/bitcoin-risks-further-slide-toward-112000-after-surprise-market-correction/)

[2] title2 (https://finance.yahoo.com/news/bitcoin-ethereum-slip-as-crypto-markets-pull-back-after-hitting-2025-highs-155818704.html)

[3] title3 (https://www.financemagnates.com/trending/bitcoin-price-is-going-down-as-market-stress-tests-bulls-before-jackson-hole)

[4] title4 (https://www.mitrade.com/au/insights/news/live-news/article-3-1049267-20250819)

[5] title5 (https://blockchain.news/flashnews/btc-slides-to-115k-eth-to-4-300-in-asia-session-400m-longs-liquidated-overnight-as-defi-wipeouts-top-1b)

[6] title6 (https://www.economies.com/crypto/news/bitcoin-holds-at-$115,000-amid-rising-macro-fears-and-liquidation-eave-47136)