Bitcoin
hovered close to $118,348 on Sunday, up 0.39% in 24 hours, as two analysts outlined paths that would take a look at merchants’ nerves: a dip towards $108K–$112K or a drawn-out vary with room for altcoins.
Lark Davis argues that if bitcoin continues to slip, the most definitely touchdown zone is $108,000–$112,000. That vary served as a ceiling earlier this 12 months when bitcoin’s rally stalled, and in market psychology, ranges that after blocked value usually flip into assist when revisited.
He emphasizes that this space additionally aligns with two basic pullback checkpoints generally known as the 50% and 61.8% Fibonacci retracements. These measures, drawn from the scale of bitcoin’s final rally, are broadly watched as a result of they usually mark the place profit-taking slows and new shopping for emerges. Whereas Fibonacci ratios sound mathematical, in observe they work as self-fulfilling markers since many merchants plan entries there.
Davis additionally factors to the 20-week exponential shifting common, a development line that updates rapidly with latest value motion. When this line is rising into the identical $108K–$112K space, it strengthens the case for assist, as a result of technical merchants see each historical past and momentum assembly in a single zone.
When a number of indicators cluster like this — resistance turned assist, Fibonacci checkpoints and a rising common —merchants name it “confluence,” and confluence zones usually act like magnets for value exams.
In different phrases, Davis isn’t predicting collapse however a wholesome reset. His framework means that if bitcoin dips, patrons might step in round that band and gasoline the subsequent leg larger.
Michaël van de Poppe takes a unique angle, noting that bitcoin was simply rejected at a key resistance stage close to its latest highs. A rejection means sellers absorbed demand as the value tried to interrupt out, a typical sign that momentum wants to chill off earlier than the subsequent push. He expects the market to consolidate relatively than development, with bitcoin shifting sideways between a flooring and a ceiling whereas leverage resets.
The TradingView chart he shared underscores this. It confirmed bitcoin making repeated makes an attempt on the prime of its vary however failing to carry above resistance. The candles shaped wicks —value spikes that rapidly light — suggesting promoting strain was lively close to the highs. Beneath, the chart marked a zone of potential assist, the place Van de Poppe believes bitcoin might discover a base earlier than one other breakout try.
For van de Poppe, the message just isn’t about deep retracement however time. A sideways vary would give the market respiration room, filter overextended positions, and set the stage for the subsequent transfer up. It could additionally open the door to rotation into altcoins, which regularly outperform when bitcoin stops trending.
That rotation, he suggests, might already be brewing. As soon as bitcoin stabilizes, merchants sometimes search larger returns in giant altcoins like ether earlier than spreading to smaller tokens. Altcoin rallies hardly ever begin whereas bitcoin is in freefall, however they usually acquire momentum when BTC ranges and volatility cools.
In plain phrases, the 2 analysts are describing completely different however suitable playbooks. Davis favors a deeper pullback right into a assist cluster that would refresh the uptrend, whereas van de Poppe sees a range-bound pause with potential for altcoins to shine.
For on a regular basis readers, the guidelines is easy: watch whether or not bitcoin trades sideways or dips to the $108K–$112K zone. In both case, analysts agree the broader bull market framework stays intact, however the path ahead might look very completely different relying on how assist and resistance play out within the weeks forward.
Technical evaluation highlights
- In accordance with CoinDesk Analysis’s technical evaluation knowledge mannequin, Bitcoin confirmed bullish power within the 24-hour window from Aug. 16, 15:00 UTC to Aug. 17, 14:00 UTC, rising from $117,847.02 to $118,485.32, a 1% acquire.
- Help shaped close to $117,261.72 early on Aug. 17, adopted by a break above $118,000 with higher-than-average quantity of two,848.15 BTC throughout rallies at 04:00, 08:00, 09:00, and 13:00 UTC.
- Within the last hour from Aug. 17, 13:17–14:16 UTC, bitcoin climbed from $118,165.31 to $118,397.67, together with a pointy transfer at 13:51–13:52 UTC when value spiked from $118,417.23 to $118,604.10 on 679.81 BTC of quantity.
- The transfer set short-term resistance round $118,600 earlier than consolidating close to $118,400, leaving potential for additional upside after cooling.
Disclaimer: Elements of this text have been generated with the help from AI instruments and reviewed by our editorial crew to make sure accuracy and adherence to our requirements. For extra info, see CoinDesk’s full AI Coverage.