Will Bitcoin (BTC) Find Support at $118,000? Price Analysis

Recent price action in the cryptocurrency market has seen Bitcoin (BTC) experience a significant downturn after reaching new all-time highs. The current focus for traders and investors is whether the key psychological and technical level of $118,000 will provide a strong support base, or if the price will continue its downward trajectory.

As of August 22, 2025, the price of Bitcoin is approximately $113,583. This puts it well below the potential support level of $118,000, indicating that the price has already fallen through that mark. The current price is also down 4% from the previous week’s price of $117,661.

Technical Analysis and Key Levels

Market analysis suggests that while the $118,000 mark was a potential point of support, Bitcoin has failed to hold above it. The next key support level to watch is approximately $110,000. This level is considered a crucial area where a significant number of buy orders could be placed, potentially preventing further declines.

If Bitcoin fails to find support at $110,000, the next significant level to watch would be around $105,000. A break below this would signal a more serious bearish trend, potentially leading to a larger correction.

Market Sentiment and Contributing Factors

The current price drop is a result of a few key factors:

Profit-taking: After a rapid ascent to an all-time high of $124,290.93 on August 13, 2025, many investors who bought at lower prices are selling to realize their gains.

Macroeconomic Concerns: Broader economic uncertainties, such as concerns about inflation and a possible U.S. economic contraction, can lead investors to pull out of riskier assets like cryptocurrencies and move to more traditional investments.

Corporate and Institutional Behavior: While there’s a long-term trend of corporate adoption of Bitcoin, as seen with companies like Aether Holdings and Click Holdings exploring Bitcoin treasuries, this doesn’t prevent short-term volatility. The market is still heavily influenced by trading patterns and news events.

The failure of Bitcoin to find support at $118,000 indicates that the bearish momentum is strong in the short term. The immediate focus for traders will be on whether the price can stabilize around the $110,000 mark. While the short-term outlook is volatile, the long-term fundamentals of Bitcoin remain strong for many analysts, driven by increasing institutional adoption, regulatory clarity from bills like the CLARITY Act, and its inherent supply scarcity.