Bitcoin News Today: Bitcoin's Price Plunge Sparks Battle Between Bearish Fears and Bullish Bets

Bitcoin’s price has recently drawn attention amid mixed signals from technical indicators and market sentiment. Following record highs above $124,000 in late July, Bitcoin has retreated, trading at approximately $116,352 as of mid-August 2025. The decline reflects profit-taking by short-term traders and a broader market correction, raising concerns about whether the price will dip further below the $110,000 threshold before year-end [1]. Analysts have noted signs of exhaustion in Bitcoin’s bullish momentum, including a negative divergence on the relative strength index (RSI), which suggests weakening upward pressure [1].

On the technical front, Bitcoin’s price has fallen below the 50-day simple moving average (SMA) at $115,702, finding support near the neckline of an inverse head-and-shoulders pattern. While minor resistance lies at $118,575, a break and close below the key support level of $110,530 could open the door for further declines toward $105,000 and potentially $100,000 [1]. Captain Faibik, a well-known analyst on X, has cited this scenario, warning of an “extreme bearish flush” that could send Bitcoin to the $98,000–$100,000 range [1].

Despite the short-term bearish outlook, long-term optimism persists. Canary Capital CEO Steven McClurg has expressed confidence in a potential rally, stating that there is a greater than 50% chance Bitcoin could reach $140,000 to $150,000 by year-end before entering a bear market in 2026 [1]. This forecast aligns with VanEck’s maintained $180,000 BTC price target by the end of 2025 [5]. Institutional adoption continues to support Bitcoin’s long-term trajectory, with firms like Amdax planning to list a Bitcoin treasury on Euronext Amsterdam and Michael Saylor’s MicroStrategy signaling intent to accumulate more Bitcoin at lower prices [3]. These moves suggest growing institutional demand, with companies collectively holding over 10% of Bitcoin’s total supply [3].

From a broader market perspective, Bitcoin’s dominance has slightly declined, dropping from 64.5% in early July to 59.7% by mid-August as Ethereum gains traction [5]. On-chain data also indicates a narrowing wedge pattern, often a precursor to significant price movement in either direction [3]. The 50-period simple moving average (SMA) at $117,462 currently acts as an immediate ceiling for short-term rallies. Meanwhile, the RSI has bounced from oversold levels, and the MACD is flattening after a bearish phase, suggesting potential momentum shifts [3].

Market participants remain cautious ahead of key macroeconomic events, including the Federal Reserve’s Jackson Hole summit, where Chair Jerome Powell is expected to address inflation and monetary policy. Traders have liquidated $567 million in positions this week, and funding rates remain negative, signaling bearish sentiment in the near term [3]. However, historical patterns from on-chain metrics suggest that Bitcoin may still be in a strong position for a rally. The Hash Ribbon indicator has signaled the end of miner capitulation, while the Stablecoin Supply Ratio (SSR) and MVRV pricing bands indicate a bullish setup for continued upward movement [4]. These metrics historically have predicted major price surges following periods of capitulation and consolidation.

In summary, Bitcoin faces immediate bearish risks but remains supported by long-term bullish fundamentals and growing institutional demand. While a decline below $110,000 is possible, the market is closely watching key technical levels and macroeconomic cues to determine the next direction of the price. Analysts remain divided between short-term caution and long-term optimism, with major price targets still above current levels.

Source:

[1] Price Predictions 8/18: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK (https://cointelegraph.com/news/price-predictions-8-18-spx-dxy-btc-eth-xrp-bnb-sol-doge-ada-link)

[2] Bitcoin (BTC) Price Prediction: In Precarious Position (https://www.coindesk.com/markets/2025/08/18/btc-in-precarious-position-as-prices-penetrate-bullish-trendline)

[3] Bitcoin Price Prediction: Will BTC Rally to $123K or Drop to $112K (https://cryptonews.com/news/bitcoin-price-prediction-will-btc-rally-to-123k-or-drop-to-112k/)

[4] Are Bitcoin's On-Chain Metrics Screaming 'Cycle Top' Right Now? (https://www.ccn.com/analysis/crypto/bitcoin-on-chain-cycle-top/)

[5] VanEck Mid-August 2025 Bitcoin ChainCheck (https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-vaneck-mid-august-2025-bitcoin-chaincheck/)