Bitcoin Holds at $118K—But Analysts Warn of Turbulence Ahead as Altcoins Lurk

Bitcoin's price floor looks shaky as traders brace for potential downside—while altcoins eye their moment.

The $118K Question: Stability or Trap?

BTC's current plateau feels more like a pause than a victory lap. With institutional inflows slowing and derivatives flashing caution, the 'digital gold' narrative faces its stiffest test since the 2024 halving.

Altcoins Circle Like Sharks

Ethereum, Solana, and other majors show unusual relative strength—classic rotation behavior that historically precedes BTC pullbacks. Retail traders are piling into leveraged alt positions, because nothing says 'calculated risk' like chasing 100x memecoins during macro uncertainty.

The Cynic's Take

Wall Street's latest 'crypto is maturing' talking points ring hollow when 90% of trading volume still comes from degenerate gamblers and algo bots. But hey—at least the volatility keeps compliance officers employed.

For van de Poppe, the message is not about deep retracement but time. A sideways range WOULD give the market breathing room, clear out overextended positions, and set the stage for the next move up. It would also open the door to rotation into altcoins, which often outperform when bitcoin stops trending.

That rotation, he suggests, could already be brewing. Once bitcoin stabilizes, traders typically seek higher returns in large altcoins like ether before spreading to smaller tokens. Altcoin rallies rarely start while bitcoin is in freefall, but they often gain momentum when BTC ranges and volatility cools.

In plain terms, the two analysts are describing different but compatible playbooks. Davis favors a deeper pullback into a support cluster that could refresh the uptrend, while van de Poppe sees a range-bound pause with potential for altcoins to shine.

For everyday readers, the checklist is simple: watch whether bitcoin trades sideways or dips to the $108K–$112K zone. In either case, analysts agree the broader bull market framework remains intact, but the path forward could look very different depending on how support and resistance play out in the weeks ahead.

• According to CoinDesk Research's technical analysis data model, Bitcoin showed bullish strength in the 24-hour window from Aug. 16, 15:00 UTC to Aug. 17, 14:00 UTC, rising from $117,847.02 to $118,485.32, a 1% gain.
• Support formed near $117,261.72 early on Aug. 17, followed by a break above $118,000 with higher-than-average volume of 2,848.15 BTC during rallies at 04:00, 08:00, 09:00, and 13:00 UTC.
• In the final hour from Aug. 17, 13:17–14:16 UTC, bitcoin climbed from $118,165.31 to $118,397.67, including a sharp move at 13:51–13:52 UTC when price spiked from $118,417.23 to $118,604.10 on 679.81 BTC of volume.
• The move set short-term resistance around $118,600 before consolidating near $118,400, leaving potential for further upside after cooling.

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.