US Actions Crush BTC: Bitcoin Price Could Drop Further – Latest Analysis (August 19, 2025)
- Why Is Bitcoin Tumbling? The US Factor
- Technical Outlook: How Low Can BTC Go?
- Analyst Take: BTCC Team Weighs In
- What’s Next for Bitcoin?
- Bitcoin Price Drop: Your Questions Answered
Bitcoin started the week on a downward spiral, flirting with the $115,000 support level amid political and economic pressures from the US. A 3% drop in 24 hours and a 7% decline from its all-time high of $124,128 last Thursday paint a bearish picture. This analysis dives into the US government’s role in the sell-off, technical breakdowns, and short-term scenarios for BTC. Buckle up—volatility is the name of the game this week.
Why Is Bitcoin Tumbling? The US Factor
The sell-off began Friday (August 15) after US Treasury Secretary Scott Bessent dashed hopes of bitcoin entering America’s strategic reserves. His remarks about prioritizing seizures of crypto linked to illegal activities—rather than buying BTC—sent shockwaves through the market. Within hours, BTC slumped below $120,000, erasing post-ATH euphoria. But wait, there’s more:
- Geopolitical Jitters: Trump’s abandoned ceasefire talks between Russia and Ukraine amplified global instability fears.
- Hot PPI Data: July’s Producer Price Index surged 0.9% (vs. 0.2% forecast), dimming hopes for Fed rate cuts in September. Risk-off mood? Check.
Technical Outlook: How Low Can BTC Go?
BTC shattered its rising wedge pattern (bullish since early August), signaling a potential drop to $111,800—the pattern’s base. The 9-day EMA nearing a bearish crossover below the 21-day EMA echoes this sentiment. But here’s the twist:
- Oversold Bounce? The 4-hour RSI at 30 hints at a temporary rebound. Key supports: $114,300 and $113,000.
- Resistance Levels: A close above $118,500 could reignite a push toward $120,000.
Analyst Take: BTCC Team Weighs In
“BTC will likely consolidate between $112,000 and $118,000 this week,” says the BTCC research team. They flag overheated futures markets as a risk amplifier—high open interest ($12.3B per CoinGlass) could turbocharge moves in either direction.
What’s Next for Bitcoin?
Macro winds remain unfavorable. Every US economic data point or geopolitical headline could spark violent swings. Traders should watch:
- Fed Speeches: Any hints on September rate decisions.
- Ukraine-Russia: Escalations = risk-off; de-escalations = relief rally.
Bitcoin Price Drop: Your Questions Answered
Why did Bitcoin crash on August 18?
Three factors: 1) US Treasury’s anti-BTC reserve comments, 2) Geopolitical tensions from failed Russia-Ukraine talks, and 3) Hotter-than-expected PPI data reducing Fed cut odds.
Is Bitcoin oversold now?
The 4-hour RSI suggests short-term oversold conditions, but macro risks could prolong downward pressure.
What’s BTC’s key support level?
$111,800 is critical—it’s the base of the broken rising wedge pattern from early August.
