Bitcoin has been a focal point of attention in the cryptocurrency market, recently hovering around $118,348, seeing a slight uptick of 0.39% in the past 24 hours. Two analysts have drawn contrasting scenarios that may test traders’ nerves in the upcoming weeks: a potential dip towards the $108,000–$112,000 range or a prolonged sideways consolidation that might benefit altcoins.
Lark Davis, a well-regarded analyst in the crypto community, emphasizes that if Bitcoin continues its downward trajectory, the most likely support zone would be between $108,000 and $112,000. This range previously acted as a ceiling during Bitcoin’s earlier rallies, and according to market psychology, resistance levels from the past often transform into support when revisited. Davis highlights that this zone aligns with prominent Fibonacci retracement levels of 50% and 61.8%. These key points are critical for many traders as they mark areas where profit-taking tends to slow down, thus creating opportunities for new buying activity.
The concept of Fibonacci ratios, while rooted in mathematics, proves to be practical in trading strategies since numerous investors plan their entries at these levels. Alongside these technical indicators, Davis points to the 20-week exponential moving average, a trend line that reacts quickly to recent price actions. The fact that this moving average is also rising into the $108,000–$112,000 range further reinforces the notion of strong support.
This clustering of signals—where historical resistance converts to support, coincides with Fibonacci retracement levels and a rising moving average—creates what traders call “confluence.” Such zones possess a magnetic effect on prices, often leading them to make repeated tests of this support area. Davis depicts this scenario not as a potential collapse but rather as a healthy market reset, suggesting that should Bitcoin dip, buying sentiment could reignite, catalyzing the next bullish leg upward.
On the other hand, Michaël van de Poppe takes a different approach, observing that Bitcoin recently faced rejection at a crucial resistance level near its recent highs. The rejection indicates that sellers have absorbed demand, signaling the market may need time to cool off before any upward push. Van de Poppe anticipates a period of consolidation, expecting Bitcoin to oscillate between a defined ceiling and floor, giving leverage positions time to reset.
A TradingView chart he shared illustrates this scenario, showing Bitcoin’s repeated attempts to breach the top of its trading range but failing to maintain its position above resistance. The candles on this chart exhibit wicks—indicative of price spikes that were swiftly reversed—suggesting that selling pressure remains active near the highs. Van de Poppe identifies a support zone below where Bitcoin could potentially establish a base before attempting another breakout.
For van de Poppe, the crux of his analysis lies not in preparing for a significant retracement, but rather in giving the market a breather. This sideways movement would serve to eliminate overextended positions while laying the groundwork for the next upward move. Notably, this consolidation period could lead to a rotation into altcoins, which historically tend to outperform Bitcoin in non-trending markets.
This rotational dynamic, van de Poppe suggests, may already be underway. Once Bitcoin stabilizes, traders often pivot towards larger altcoins like Ethereum, seeking higher returns before branching out to smaller tokens. Altcoin rallies typically do not commence during Bitcoin’s freefall, but they frequently gain traction when Bitcoin enters a range and volatility diminishes.
In essence, the two analysts are offering distinct yet compatible strategies: Davis leans toward a deeper pullback into a robust support cluster, while van de Poppe anticipates a consolidation that allows for the flourishing of altcoins. For the everyday reader, the takeaway is straightforward: keep an eye on Bitcoin’s movements—whether it trades sideways or dips into the $108,000–$112,000 zone will serve as crucial indicators. In either scenario, both analysts agree that the overarching framework of a bull market remains intact, albeit with divergent paths for how traders may find opportunities ahead.
Technical analysis highlights
- According to CoinDesk Research’s technical analysis data model, Bitcoin displayed bullish activity from Aug. 16, 15:00 UTC to Aug. 17, 14:00 UTC, rising from $117,847.02 to $118,485.32—an increase of 1%.
- Support formed near $117,261.72 on Aug. 17, with Bitcoin breaking above $118,000 on higher-than-average volume of 2,848.15 BTC during specific rally times at 04:00, 08:00, 09:00, and 13:00 UTC.
- In the final hour from Aug. 17, 13:17–14:16 UTC, Bitcoin surged from $118,165.31 to $118,397.67, experiencing a rapid increase at 13:51–13:52 UTC when the price jumped from $118,417.23 to $118,604.10 with a whopping volume of 679.81 BTC.
- This movement established short-term resistance around $118,600 before consolidating near $118,400, leaving open the potential for further upside after a period of cooling.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
