Bitcoin News Today: Investors Navigate Bitcoin's 'Mild Danger Zone' Amid Profit-Taking Fears

Bitcoin faces renewed market pressures as macroeconomic factors and investor sentiment contribute to a consolidation phase following record highs. The cryptocurrency briefly reached a new all-time high of $124,496 earlier in the week before retreating to approximately $116,394 by late Monday, a decline of 1.1%. Ether also dipped 2.5% to $4,354 after nearing its record $4,800 level. The pullback has been attributed to profit-taking and macroeconomic uncertainties, particularly after the release of higher-than-expected July wholesale inflation data, which cast doubt on the likelihood of a September Federal Reserve rate cut [1].

The price corrections were accompanied by significant liquidations across the crypto market. Over $530 million in long positions were sold in the past 24 hours, with $124 million and $184 million in liquidations for Bitcoin and Ether, respectively, according to CoinGlass data. These forced sales often occur when leveraged traders are unable to meet margin requirements, triggering further downward pressure on prices [1]. The broader crypto market, as measured by the CoinDesk 20 index, fell 1.2%, reflecting a widespread pullback in blue-chip assets [1].

Analysts suggest that the current price action is more of a strategic cooldown than an indication of an underlying crisis. Institutional and corporate demand for Bitcoin and Ether remains strong, supported in part by crypto ETFs and aggressive accumulation by companies. For the week ending August 18, Bitcoin ETFs recorded net inflows of $547 million, while Ether ETFs saw $2.9 billion in inflows—their 14th consecutive weekly inflow. This suggests continued interest and confidence from institutional investors [1]. However, recent data from sentiment platform Santiment indicates that Bitcoin is in a "mild danger zone" with an overvaluation metric of +21%, signaling a higher likelihood of profit-taking by investors [2].

Traders are now in a consolidation phase, with the market adopting a wait-and-watch approach ahead of key macroeconomic events, including the Federal Reserve's September policy meeting and the Jackson Hole Economic Symposium in Wyoming [1]. A significant number of Bitcoin shorts are at risk of liquidation if prices rally above $116,500, according to CoinGlass. This has led to speculation that a short squeeze could be on the horizon, particularly if macroeconomic conditions improve or the Fed signals aggressive rate-cutting intentions [3].

Meanwhile, the behavior of large Bitcoin holders provides a more optimistic outlook. Santiment noted that wallets holding between 10 and 10,000 BTC have continued to accumulate aggressively, even after the recent all-time high [2]. This suggests that long-term investors remain confident in the asset’s future, despite short-term volatility. However, speculative traders have taken a more bearish stance, with some forming the largest-ever leveraged short positions on Ether, as reported by Barchart [3]. The outcome of these short positions will depend on whether Bitcoin and Ether can sustain a move above key resistance levels or if further downward momentum emerges.

The coming weeks will be critical in determining the direction of the market. Investors will closely watch the Federal Reserve’s decisions, inflation data, and global macroeconomic developments. The Jackson Hole symposium, where Fed Chair Jerome Powell is expected to speak, will provide additional clarity on the central bank’s policy path, which could significantly influence market sentiment. For now, Bitcoin and Ether appear poised for a period of consolidation, with prices expected to trade within the $115,000–$120,000 range for the near term [1].

Source:

[1] Crypto Market Today (https://www.cnbc.com/2025/08/18/crypto-market-today.html)

[2] Bitcoin Price Danger Zone, Consolidation, Profit-Takers (https://cointelegraph.com/news/bitcoin-price-danger-zone-consolidation-profit-takers-analysts)

[3] Bitcoin, Ether Eye Short Squeeze (https://cointelegraph.com/news/bitcoin-ether-eye-short-squeeze-as-traders-build-largest-ever-eth-short)