Bitcoin News Today: Bitcoin Stalls Below $118,000 Amid Short-Term Correction and Institutional Buying

Bitcoin is currently encountering significant resistance near $115,000 and $118,000, with analysts suggesting a potential short-term correction as the market consolidates. The cryptocurrency has stabilized above $114,000 following a recent pullback but remains below key technical levels that could signal further downward movement. Should this support zone fail, Bitcoin could see a drop toward $105,000–$112,000, reinforcing bearish sentiment among traders monitoring near-term volatility [1].

Institutional activity remains a key factor in Bitcoin’s current position, as large investors continue to accumulate during consolidation phases. For instance, Japan-based Metaplanet has reportedly added significant BTC at these levels, suggesting that long-term holders remain optimistic despite short-term headwinds [2]. This strategy contrasts with the broader market’s mixed signals, where Bitcoin’s current position below the 20-day moving average indicates possible continued downward pressure [3].

Market analysts have highlighted the bearish implications of Bitcoin’s recent behavior, particularly after a one-week correction of -21.12%. This volatility has spurred speculation about altcoin rotation, with some traders anticipating increased liquidity shifts toward alternative cryptocurrencies and DeFi assets if Bitcoin’s dominance weakens further [4]. Social media traders and on-chain analysts are closely watching trend lines and Bitcoin dominance indicators, which could signal an upcoming altcoin season [5].

Meanwhile, there are contrasting views on the long-term potential of Bitcoin. Ledn’s CIO, John Glover, has forecasted a possible rise to $140,000 by year-end, although he also expects a subsequent bear market to follow [6]. Another analyst has predicted a more aggressive target of $155,000, pointing to strong support levels and a bullish MACD as justification [7]. These projections, however, remain speculative and are contingent on a strong breakout above the $115,000–$118,000 resistance range.

Bitcoin recently tested lower support near $112,000 and has since regained ground above $114,000, indicating that buyers are stepping in at critical levels. However, the market has shown signs of consolidation, with Bitcoin trading within a narrow range of $113,000 to $115,000, suggesting an absence of strong directional momentum [8]. This pattern is historically common in August, a month typically marked by Bitcoin’s average decline and increased on-chain accumulation [9].

Broader macroeconomic factors, such as investor caution around tariffs and general risk appetite, have also contributed to the current holding pattern. Bitcoin’s recent steadiness near $114,000 reflects the market’s sensitivity to these external pressures, with traders adopting a more defensive stance [10]. The broader cryptocurrency market remains in a similar state, with Ethereum also struggling to break out of a defined trading range as investors await a clear catalyst for further movement.

Sources:

[1] https://coinmarketcap.com/community/articles/6892c652e7f3761419060190/

[2] https://cryptodaily.co.uk/news-in-crypto/bitzo:bitcoin-has-absorbed-most-of-the-downward-force-which-altcoins-are-prepared-to-go-vertical

[3] https://www.btcc.com/en-CA/square/Bitcoin%20News/749470

[4] https://coinstats.app/news/202c066bafbe868814578cbdc96a636663b6bbecff544fa07b48c954906525fc_Falling-Market--Is-It-Strategic-Time-To-Collect-Meme-Tokens-Can-SPX-DOGE--PEPE-Trigger-Massive-Moves-In-August

[5] https://www.instagram.com/p/DM762mzqsKl/

[6] https://m.economictimes.com/crypto-news-today-live-04-aug-2025/liveblog/123081462.cms

[7] https://www.instagram.com/p/DM8YxclqCp7/

[8] https://coindcx.com/blog/price-predictions/bitcoin-price-weekly/

[10] https://www.mitrade.com/au/insights/news/live-news/article-3-1010569-20250805