Bitcoin’s Meteoric Rally Crashes Back to Earth – Plunges to $118K After Record High

Bitcoin’s gravity-defying surge hits a wall as bulls get a brutal reality check.

From euphoria to panic in 24 hours

The crypto king shed billions in market cap overnight—proving once again that what goes up must come down. Especially when Wall Street 'whales' start taking profits.

The $118K wake-up call

Traders who bought the top are now nursing losses, while permabulls scramble to explain why this is 'healthy consolidation.' Meanwhile, traditional finance bros smugly adjust their 'told you so' spreadsheets.

Volatility? In crypto? Groundbreaking. The only certainty is that someone’s getting liquidated—and your friendly neighborhood crypto influencer will blame 'market manipulation.'

Technical Patterns Indicate Short-Term Weakness

TradingView’s four-hour chart reveals that bitcoin was on a strong upward trajectory until August 13, when it peaked at around $121,000 before losing steam. After that, prices broke through the upward trend line and dipped below the 50-period moving average.

The 50-day average is above the 200-day average, which means that there was some short-term optimism in the market not so very long ago. But with the recent drop, it looks like the sellers are in control again.

Moreover, the growing distance between Bitcoin’s price and the 50-day average indicates that there may be increased volatility soon.

According to Coinglass data, over $1 billion in positions were liquidated in just the past 24 hours, with long positions taking the biggest hit, losing $782 million and impacting more than 219,000 traders. The largest single liquidation occurred on Bybit’s BTCUSD contract, totaling a staggering $10 million.

Market Sentiment Moving Forward

When looking at the medium-term outlook, medium-term sentiment is still positive. This is due to institutional interest and the trend of adoption, despite short-term bumps along the way. 

Bitcoin’s recent surge to a new all-time high quickly turned into a pullback, largely due to inflation worries shaking up the markets. While the whole trend is promising, volatility may around in the upcoming sessions.

Also Read: Bitcoin price Surges Past $123K as Rally Targets $125K