Bitcoin found itself in a holding pattern around $118,348 on Sunday, gaining a modest 0.39% over the past 24 hours. Two prominent analysts have painted diverging paths for the cryptocurrency’s short-term trajectory—each with its own implications for traders and the broader market.
A Deeper Dive or Just a Breather?
Lark Davis, a well-regarded voice in the crypto community, suggests that if Bitcoin begins to backslide, it could settle into a range between $108,000 and $112,000. This zone isn’t arbitrary; it served as a resistance ceiling earlier this year when Bitcoin’s upward momentum lost steam. In trading parlance, levels that once blocked upward movement often transform into support when revisited, making this range a potential cushion for falling prices.
Davis points to the 50% and 61.8% Fibonacci retracement levels as additional factors reinforcing this zone. These mathematical ratios, while complex in theory, often act as self-fulfilling prophecies in the trading world. Many traders anchor their buying strategies to these levels, which can slow profit-taking and spark new purchases. Adding weight to this argument is the 20-week exponential moving average, a dynamic trend line that recently converged with this range. The confluence of these factors—historical resistance turned support, Fibonacci levels, and rising averages—could provide a magnetic pull for Bitcoin prices.
Here’s the kicker: Davis isn’t forecasting a collapse but rather a “healthy reset.” Should Bitcoin gravitate toward this support cluster, it might set the stage for the next upward leg. This perspective aligns with recent market movements, as detailed in Bitcoin Pulls Back to $119K as Looming Inflation Data Could Bring Price Swings.
A Sideways Shuffle and Altcoin Opportunities
Meanwhile, Michaël van de Poppe takes a different perspective. He notes that Bitcoin recently encountered resistance near its highs, where sellers absorbed the buying pressure, indicating a potential cooling-off period. Instead of a deeper retracement, van de Poppe anticipates a consolidation phase where Bitcoin moves sideways, allowing leverage to reset and the market to catch its breath.
His analysis, shared via a TradingView chart, shows Bitcoin repeatedly failing to breach its upper range, with price spikes quickly retreating—suggestive of selling pressure near the peaks. Underneath, a zone of potential support may offer a base for another breakout attempt. For van de Poppe, this isn’t about price diving but rather about time—giving the market a chance to stabilize before the next move.
Interestingly, this sideways action could pave the way for altcoin rotation. When Bitcoin steadies, traders often pivot toward altcoins like Ether, seeking higher returns. Altcoin rallies typically gain momentum when Bitcoin isn’t hogging the limelight, and van de Poppe hints that this shift might already be in motion. This follows recent volatility, as noted in Bitcoin Suddenly Crashes Under $118K as Liquidations Surge Toward $1B.
What Lies Ahead?
In essence, the two analysts outline distinct yet compatible playbooks. Davis anticipates a deeper pullback into a robust support zone that could rejuvenate the ongoing uptrend, while van de Poppe envisions a range-bound pause with the potential for altcoins to thrive.
For those keeping a close watch, the checklist is straightforward: monitor whether Bitcoin trades sideways or dips into the $108K–$112K territory. Both analysts concur that, despite short-term fluctuations, the broader bullish framework remains intact. The path forward might diverge depending on how support and resistance materialize in the ensuing weeks.
A Look Back and Forward
According to CoinDesk Research’s technical analysis, Bitcoin demonstrated bullish vigor in the 24-hour window ending on August 17, rising from $117,847 to $118,485—a 1% uptick. Early support formed near $117,261, followed by a break above $118,000 with elevated trading volumes. The final hours saw Bitcoin peak at $118,604 before settling around $118,400, suggesting room for further growth post-consolidation.
The cryptocurrency market is notoriously volatile, and while these analyses offer a roadmap, uncertainties linger. Whether Bitcoin embarks on a deeper dip or settles into a sideways shuffle, the market’s next chapter remains unwritten. As always, traders are advised to stay vigilant, adapt to evolving conditions, and keep a keen eye on emerging patterns.
Source
This article is based on: Bitcoin Steadies at $118K as Analysts Flag Deeper Pullback Risks and Altcoin Rotation
Further Reading
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- Bitcoin Price Analysis: BTC Tests Crucial Support After Latest ATH
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.
