Bitcoin Pullback Sparks Cautious Optimism
Posted: Mon Aug 18, 2025 4:36 am
Bitcoin’s recent retreat to approximately $115,000—roughly 7 percent below its all-time high of $124,128 reached on August 14—has triggered a wave of caution among market participants. This pullback stems from two key dynamics: profit-taking by large holders and weakened macroeconomic sentiment. On one hand, whales have been moving Bitcoin onto exchanges like Binance, signalling a distribution phase and heightened selling pressure. On the other hand, unexpectedly strong producer price data has dimmed hopes for imminent interest rate cuts, weakening risk appetite across the board. The U.S. Treasury’s public confirmation that Bitcoin will not be added to national reserves added further downward pressure on sentiment.
Technically, the $114,000–$114,600 range now forms a critical support zone. A sustained breach below that could open the door to a deeper correction toward $112,000. However, some indicators suggest the pullback may stabilize soon. Short-term holders are stepping back from aggressive profit-taking— Glassnode data shows around 70 percent of short-term supply remains in profit, while the spent output profit ratio (SOPR) indicates that weaker hands are starting to sell at cost, not in profit. This balanced on-chain behavior, combined with restrained selling, may provide a firm footing for price consolidation or a rebound.
If Bitcoin recovers above about $117,500, it could reignite bullish momentum and set the stage for another run toward $120,000. Until then, the market seems content to cool off and reassess. Traders and investors appear to be eyeing the current consolidation near $115,000 as a potential launchpad for the next leg of the cycle, provided macroeconomic data turns more favorable and on-chain selling pressure remains muted.
Technically, the $114,000–$114,600 range now forms a critical support zone. A sustained breach below that could open the door to a deeper correction toward $112,000. However, some indicators suggest the pullback may stabilize soon. Short-term holders are stepping back from aggressive profit-taking— Glassnode data shows around 70 percent of short-term supply remains in profit, while the spent output profit ratio (SOPR) indicates that weaker hands are starting to sell at cost, not in profit. This balanced on-chain behavior, combined with restrained selling, may provide a firm footing for price consolidation or a rebound.
If Bitcoin recovers above about $117,500, it could reignite bullish momentum and set the stage for another run toward $120,000. Until then, the market seems content to cool off and reassess. Traders and investors appear to be eyeing the current consolidation near $115,000 as a potential launchpad for the next leg of the cycle, provided macroeconomic data turns more favorable and on-chain selling pressure remains muted.