Bitcoin’s price trajectory has been anything but steady lately. After reaching a new pinnacle at around $124,120 in mid-July, the premier cryptocurrency has struggled to maintain its bullish momentum. The crypto market leader dipped below $112,000 on August 21, only to bounce back following a speech by US Federal Reserve Chairman Jerome Powell on August 22. Now, market watchers are keenly observing the $118,000 level, which could be pivotal for Bitcoin’s next big move.
The $118,000 Threshold: Key to Bitcoin’s Future?
On August 23, crypto analyst Ali Martinez took to social media platform X to highlight the importance of the $118,000 mark for Bitcoin’s bullish ambitions. According to Martinez, reclaiming this level could be crucial for Bitcoin to regain its upward trajectory. This assertion isn’t just based on gut feeling; it’s backed by data from the Glassnode MVRV (Market Value to Realized Value) Momentum indicator, a tool adept at identifying macro market trends.
The MVRV Momentum indicator blends the MVRV ratio with a 70-day simple moving average (SMA). When the MVRV ratio surpasses the 70-day SMA, it hints at a bullish phase, suggesting that Bitcoin was largely acquired below the current price, putting holders in profit. Conversely, a dip below the moving average points to a bearish phase, indicating that Bitcoin was bought above the current price, leaving holders in a precarious position.
Martinez noted that the 70-day SMA is hovering around the $118,000 region. To reignite bullish momentum, the MVRV ratio needs to break above this moving average, marking a potential trend shift for Bitcoin. This aligns with recent analyses, such as Bitcoin price breakout to $117K liquidates bears, opening door to fresh all-time highs, which suggest that surpassing key levels could pave the way for new records.
Market Sentiment and Expert Opinions
Bitcoin’s recent volatility has not gone unnoticed in the broader market. Analysts are divided on whether the cryptocurrency can sustain a rally past $118,000. While some market participants remain optimistic, citing the potential for institutional adoption and technological advancements as catalysts, others are more circumspect.
“Bitcoin’s recent price action has been a rollercoaster, but it’s important to remember that such volatility is part and parcel of this asset class,” said Jessica Liu, a cryptocurrency analyst at a major financial firm. “The $118,000 level could indeed serve as a psychological barrier, but I wouldn’t put all my eggs in one basket just yet.”
The market’s reaction to Jerome Powell’s speech, which hinted at potential monetary policy shifts, underscores the interconnectedness of crypto and traditional finance. Powell’s remarks appeared to inject a dose of optimism, temporarily buoying Bitcoin and other digital assets. For further insights into market dynamics, see Bitcoin Market Structure ‘Still Looks Extremely Bullish,’ Says FalconX Head of Research.
Historical Context and Future Implications
Bitcoin’s journey is a story of resilience and reinvention. From its meteoric rise to its dramatic falls, the cryptocurrency has repeatedly defied expectations. The current focus on the $118,000 level is just the latest chapter in this ongoing saga.
Historically, Bitcoin has weathered numerous storms, from regulatory crackdowns to security breaches. Each time, it has bounced back, often stronger than before. However, the road ahead remains fraught with challenges. Regulatory scrutiny, technological hurdles, and market dynamics continue to play a significant role in shaping Bitcoin’s trajectory.
As of today, Bitcoin’s price hovers around $116,217, marking a modest 2% increase over the past 24 hours. Yet, it’s still down by more than 1% on a weekly basis. With the MVRV 70-day SMA looming as a potential pivot point, the coming weeks could prove decisive.
The question now is whether Bitcoin can break free from its recent doldrums and chart a new course. While the $118,000 level is certainly a focal point, it’s far from the only factor at play. The interplay of market forces, regulatory developments, and investor sentiment will all contribute to Bitcoin’s future path.
What Lies Ahead?
Looking ahead, the crypto community is abuzz with speculation. Will Bitcoin reclaim its bullish momentum, or will it continue to struggle? The $118,000 level might hold the key, but it’s just one piece of a much larger puzzle.
As we move forward into late 2025, the cryptocurrency landscape is poised for further evolution. Innovations like decentralized finance (DeFi) and non-fungible tokens (NFTs) are reshaping the market, offering new opportunities and challenges alike.
In this ever-changing environment, one thing remains certain: Bitcoin will continue to capture the world’s attention. Whether as a store of value, a medium of exchange, or a speculative asset, its influence is undeniable. As investors and analysts alike keep a watchful eye on the $118,000 level, the next chapter in Bitcoin’s story is waiting to be written.
Source
This article is based on: Bitcoin Price In A Trend Shift? Here’s Why $118K Might Be Vital For A Bullish Return
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
