Bitcoin News Today: Bitcoin nears key $116,817 support amid bearish patterns and CPI uncertainty

Bitcoin's price trajectory remains under pressure as macroeconomic factors and bearish technical patterns converge, prompting analysts to highlight a key support level as critical for near-term stability. On August 12, 2025, crypto research firm Matrixport identified $116,817 as a pivotal support level for Bitcoin amid heightened volatility and anticipation of the U.S. Consumer Price Index (CPI) release [1]. This level has already seen Bitcoin retest multiple times in the past week, with a notable retest at $112,000 on August 4 and a holding pattern around $118,933 on July 29 before facing downward risks [2] [4].

Bitcoin’s price recently retreated to around $119,000 after reaching nearly $122,000 in early August, signaling profit-taking and sensitivity to broader macroeconomic trends [3]. The market is now closely watching whether this pullback is a temporary consolidation or a sign of deeper bearish momentum, especially with the U.S. Federal Reserve’s policy outlook in flux. A hotter-than-expected CPI reading could delay rate cuts and reinforce the U.S. dollar's strength, potentially exacerbating Bitcoin’s downward pressure [1]. In contrast, a softer report could boost expectations for monetary easing and provide a tailwind for risk assets.

Technical indicators also point to caution. A double top pattern emerged as Bitcoin failed to hold above $122,000, raising concerns about a potential bearish reversal [3]. According to analysts at FastBull, should Bitcoin regain strength, it could target the $123,231 level, extending its Fibonacci retracement from $111,889 to $127,390 to the 61.8% level [6]. However, this remains speculative and contingent on broader macroeconomic clarity.

Market dynamics have also shifted, with inflows into Bitcoin investment products slowing and institutional interest increasingly turning to Ethereum and altcoins [1]. CoinGlass data shows significant selloffs in the derivatives market, with total BTC futures open interest jumping more than 5% in the last 24 hours to $79.74 billion [1]. The 4-hour BTC futures open interest on CME increased by 0.70%, while it fell by 0.47% on Binance, reflecting divergent positioning [1].

The broader crypto market mirrors Bitcoin’s volatility. XRP has slipped nearly 8% over four days, testing key support near $3.11 [7], while Bitcoin Cash has declined 0.66% as traders adjust exposure amid macroeconomic uncertainty [8]. These movements highlight the interconnected nature of the crypto market and the influence of global economic indicators.

With the U.S. CPI data set for release, the coming days will be pivotal in determining Bitcoin’s direction. The ability to defend the $116,817 support level will be crucial in shaping whether a bearish correction continues or a bullish recovery emerges from the current consolidation phase.

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Source:

[1] https://www.thecoinrepublic.com/2025/08/12/bitcoin-price-prediction-key-support-level-to-watch-amid-us-cpi-other-headwinds/

[2] https://www.ainvest.com/news/crypto-market-loses-18-billion-volatility-cpi-release-2508/

[3] https://m.fastbull.com/news-detail/bitcoin-retreats-to-119k-as-traders-eye-us-4339301_0

[4] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-consolidates-118-400-trump-crypto-401-policy-shift-2508/

[6] https://www.fastbull.com/analyst-article/bullish-momentum-could-regain-speed-4339188_0

[7] https://m.economictimes.com/news/international/us/xrp-price-prediction-slipping-nearly-8-in-four-days-is-this-sharp-dip-the-calm-before-a-12-60-storm-after-the-sec-win/amp_articleshow/123259677.cms

[8] https://tradersunion.com/news/cryptocurrency-news/show/432718-bitcoin-cash-drops/