Bitcoin News Today: Bitcoin Tests $118,000 Support Amid 2.18% Daily Drop and 3.75% Weekly Gain

Bitcoin is currently testing the $118,000 support level amid a consolidation phase following a recent price rally. As of the latest data, Bitcoin is trading at $118,607, representing a 2.18% decline in the last 24 hours but a 3.75% increase over the past week, according to CoinMarketCap. The broader market shows signs of cooling, with the total market cap of Bitcoin at $2.36 trillion and a 24-hour trading volume of $75.02 billion, down 2.9% from the previous day. ETF inflows have also slowed, with net inflows on August 11 standing at $178 million, nearly half the previous session’s figure, indicating reduced speculative activity during the correction phase [1].

Short-term holders—investors who have held Bitcoin for less than 155 days—are actively accumulating the asset. On-chain data from Glassnode reveals that these holders have added over 220,000 BTC to their wallets since June 21, a 9.9% increase. While this accumulation is not as aggressive as the 540,000 BTC added during the sharp rotation seen in January–March, it still signals a shift in buying behavior among newer investors who are taking advantage of the pullback to “buy the dip” [1].

The price action of Bitcoin over recent hours suggests the formation of an Elliot Wave Cycle. Since August 3, the market has completed three impulsive waves, with the current dip representing the fourth wave correction. Analysts believe the price is consolidating within a key support zone around $118,000. The 100-day Exponential Moving Average (EMA) aligns with this level, offering additional technical support. A successful defense of this level would confirm the validity of the wave count and potentially lead to a final fifth wave, with a price target of $124,800 [1].

Technical indicators further highlight the importance of this support level. The Relative Strength Index (RSI) is currently at 42.01, placing Bitcoin in a neutral zone, while the Moving Averages Convergence Divergence (MACD) has shown a bearish crossover, with the MACD line falling below the signal line. These mixed signals indicate that the market remains in a state of balance, with potential for either a rebound or further downward correction [1].

On-chain activity supports a cautious bullish outlook. Short-term holders, whose average cost is around $106,000, are buying at a discount to current prices, while long-term holders continue to hold positions, suggesting confidence in Bitcoin’s long-term value. This distribution pattern reflects a healthier market dynamic and could indicate that the current pullback is being used by buyers to build positions rather than trigger panic selling [4].

Whale activity has also increased, with some large holders accumulating assets, although this trend is more visible in other crypto markets. For example, a single whale identified as 8dduty recently accumulated 2.79 million AVA tokens valued at approximately $118,000 within 16 hours. While not directly linked to Bitcoin, this kind of accumulation often precedes broader market sentiment shifts and may reflect a similar mindset among Bitcoin investors [3].

The technical setup is critical moving forward. A successful hold above $118,000 could lead to a retest of $120,000 within days and potentially a move toward $124,800 or even $130,000 if the price breaks above $120,000–$123,000. However, the bearish MACD signal warns of potential selling pressure that could push the price lower to test the $115,000 zone. Analysts closely watch these levels as they could determine whether the current correction ends or evolves into a deeper pullback [2].

The overall market environment supports a continuation of the accumulation trend. With Bitcoin trading near key technical levels and on-chain metrics showing positive signs, the stage is set for a potential breakout. However, traders and investors are urged to remain cautious and monitor the $118,000 level closely. A break below this level could trigger further selling pressure and force a reevaluation of the bullish narrative [5].

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[1] https://coinmarketcap.com/community/articles/689b2b845ed6af54da1db20d/

[2] https://www.tradingview.com/symbols/BTCUSDT_5840B7.USD/ideas/?asset=base&sort=recent

[3] https://blockchain.news/flashnews/whale-alert-8dduty-buys-2-79m-ava-118k-in-16-hours-holds-509-33m-pump-1-83m-after-906-7-spark-profit-on-chain-data

[4] https://www.instagram.com/p/DNLusOLPqtf/

[5] https://www.facebook.com/groups/binancecommunityx/posts/22596145****7841/