The cryptocurrency market faced renewed downward pressure on August 18, 2025, with Bitcoin sliding below $115,000 after failing to hold critical support at $118,000. The breakdown triggered over $100 million in liquidations of long positions within 24 hours, with $80 million of that occurring in just four hours [1]. The sell-off extended across the broader market, erasing over $100 billion in value and pushing the total crypto market cap below $3.91 trillion [2]. Ethereum, Bitcoin’s top rival, fell toward $4,300, echoing Bitcoin’s bearish trend and contributing to the overall sentiment of caution among traders [3].
The technical breakdown was visually confirmed by the formation of a rising wedge pattern on the daily chart, a bearish signal that typically precedes deeper corrections [4]. Traders now watch closely as the $112,000 level becomes the next key support for Bitcoin. If this level fails, further declines toward $105,000 become more likely. On Ethereum, the $4,100 level serves as a critical floor. Bulls will need to defend this area to prevent a potential pullback toward the $3,600–$3,800 range [5].
The price action is not solely driven by technical factors. A hotter-than-expected U.S. inflation report raised doubts about the timing of Federal Reserve rate cuts, dampening risk appetite and pushing the U.S. dollar index higher. A stronger dollar typically puts downward pressure on Bitcoin and other risk assets, adding to the bearish outlook [6]. Additionally, institutional demand has cooled, with Bitcoin ETFs recording outflows for the first time since July. This shift signals that larger investors are hesitant to buy at current levels, further exacerbating the downward trend [7].
Ethereum’s decline was amplified by broader market weakness and a lack of momentum in key projects. The token had approached $4,800 earlier in the month, but the current technical environment has hindered its ability to break higher. While Ethereum remains within an ascending channel near $4,405, traders are on alert for a bullish engulfing candle above $4,450 as a potential catalyst for a new upward move [8].
Altcoins have also been affected, with the total market cap slipping under $4 trillion. If the $3.84 trillion level holds, the market may consolidate sideways for a period. However, a clean break lower could trigger sharper declines across smaller-cap tokens, increasing the risk of a broader correction [9].
With leverage still elevated and macroeconomic headwinds persisting, the coming days will be critical for Bitcoin and Ethereum. The ability to stabilize above $115,000 for Bitcoin and $4,300 for Ethereum will determine whether the market regains confidence or continues its downward trajectory. Market participants remain cautious, recognizing that the next few weeks could shape the near-term outlook for the crypto space [10].
Source:
[1] https://captainaltcoin.com/heres-why-the-crypto-market-is-down-as-bitcoin-price-slips-to-115k/
[2] https://cryptonews.com/news/live-crypto-news-today-latest-updates-for-august-18-2025/
[3] https://www.ainvest.com/news/bitcoin-news-today-metaplanet-adds-775-btc-dormant-wallets-move-3-78-billion-bitcoin-5-54-weekly-drop-2508/
[4] https://www.mitrade.com/insights/news/live-news/article-3-1045864-20250817
[5] https://www.spreaker.com/podcast/the-bitcoin-cryptocurrency-investment-show–6440507
[6] https://www.stormrake.com/blogs/
[7] https://coinmarketcap.com/community/articles/68a2cf5a46c6e92fc770a682/
[8] https://cryptonews.com/news/ethereum-price-prediction-will-sharplinks-massive-eth-holdings-offset-revenue-decline/
