Bitcoin News Today: Bitcoin Stabilizes Near $118K Amid Altcoin Rotation and Pullback Risks

Bitcoin stabilizes near $118,000 after a pullback from a record high of $124,533, with analysts indicating that a deeper correction may be in the works. The world’s largest cryptocurrency has shown signs of consolidating, sparking discussions about a potential shift in market dynamics [2]. Analysts such as Lark Davis and Michaël van de Poppe suggest that Bitcoin could retreat to the $108,000–$112,000 range, a level previously acting as resistance but now functioning as support [1]. This pullback is being viewed as part of broader market behavior where Bitcoin’s consolidation is often followed by a surge in altcoin performance.

The current market trend reflects a noticeable shift in institutional and retail investor flows from Bitcoin to altcoins such as Ethereum (ETH), Solana (SOL), and XRP. Ethereum, in particular, has shown robust performance, with increasing total value locked (TVL) and trading volume suggesting renewed interest [1]. Analysts have pointed to historical patterns indicating that periods of Bitcoin consolidation often precede “altseason,” a phase where altcoins outperform the leading cryptocurrency [1]. This rotation of capital has also been influenced by expectations around U.S. Federal Reserve rate cuts, which have contributed to Bitcoin’s recent dip from above $124,000 to near $117,760 [12].

Ethereum’s outperformance has been further supported by inflows into Bitcoin and Ethereum ETFs, signaling growing institutional adoption [11]. This trend has led to increased attention on altcoins, as traders seek higher returns amid Bitcoin’s sideways movement. However, not all altcoins are performing equally—while Ethereum gains momentum, others like SOL, XRP, and DOGE have seen varying levels of decline [1].

Some analysts have raised concerns about a potential bearish scenario for Bitcoin, with one forecasting a 30% chance that the current price represents the peak of the market cycle. This perspective suggests a potential pullback to between $60,000 and $70,000 by November 2026 before a new rally could emerge [3]. It is important to note that these projections are speculative and should not be treated as confirmed market movements [3].

Despite the bearish signals, Bitcoin has shown resilience, with traders watching closely for a potential breakout above $120,000—a level that could reignite bullish momentum [7]. For now, the focus remains on altcoin activity, particularly Ethereum, as investors adjust their portfolios in response to Bitcoin’s consolidation. The broader market appears to be in a transitional phase, with capital flows shifting and investor sentiment adapting to the evolving landscape.

[1] Bitcoin Holds at $118K Amid Pullback Concerns and Altcoin Momentum, (https://holder.io/news/bitcoin-holds-118k-amid-pullback-altcoin-momentum/)

[2] Bitcoin Steadies at $118K as Analysts Flag Deeper Pullback Risks and Altcoin Rotation, (https://www.coindesk.com/markets/2025/08/17/bitcoin-steadies-at-usd118k-as-analysts-flag-deeper-pullback-risks-and-altcoin-rotation)

[3] Bitcoin Cycle Peak Alert: Expert Says BTC Might Be Near, (https://www.mitrade.com/insights/news/live-news/article-3-1045748-20250817)

[12] Injective Price Analysis: Can INJ Surge to $28 Amid Market..., (https://www.xt.com/en/blog/post/injective-price-analysis-can-inj-surge-to-28-amid-market-pullback)

[7] Bitcoin & Ethereum At Perfect Entry Before Life-Changing..., (https://cryptodaily.co.uk/news-in-crypto/bitzo:historic-opportunity-bitcoin-ethereum-at-perfect-entry-before-life-changing-rally-begins)

[11] XLM Price Approaches Breakout as Key Metrics Surge, (https://m.economictimes.com/crypto-news-today-live-16-aug-2025/liveblog/123325936.cms)