Bitcoin Plunges to $118K, Sealing CME Gap in Wild Market Shakeout

Bitcoin just delivered a classic CME gap fill—with fireworks. The king of crypto nosedived to $118K, closing the futures market's speculative window in a move that left traders equal parts thrilled and wrecked.

Why it matters: Gaps on CME's Bitcoin futures charts act like magnets for price action. This one got filled the hard way—with a double-digit percentage drop that liquidated over-leveraged gamblers (sorry, 'traders').

The irony? Wall Street's beloved regulated derivatives product now dictates spot market movements more than any Satoshi whitepaper principle. So much for decentralization purism when CME gaps become self-fulfilling prophecies.

What's next: Either this is healthy consolidation before the next leg up... or proof that $118K is the new 'sell the news' level for institutions who still think crypto is their personal casino. Place your bets.

PPI leads to bitcoin volatilityPPI leads to Bitcoin volatility Notably, Bitcoin has failed to sustain the rebound, now trading at $118,335, a 1.9% drop in the past day. In the past hour, Bitcoin has dropped by 0.7%. For context, Bitcoin reached a new all-time high earlier today at $124,128 before falling to the current price.  Jelle described the immediate aftermath as a volatile period and suggested that further swings are possible as traditional markets absorbed the inflation surprise. British Hodl Confirms CME Gap Closure British Hodl, who on August 11 had pointed out the creation of a new CME gap at $118,335, confirmed today that the gap was now closed. The post-PPI sell-off briefly took Bitcoin into this gap range, completing the move before a swift rebound.  With this gap now resolved, a notable piece of technical overhead has been removed from the market.

CME filledBitcoin CME Gap Filled Notably, the U.S. Bureau of Labor Statistics reported that July’s PPI rose 0.9%, the largest monthly gain since June 2022, and was up 3.3% year-over-year, higher than the expected 2.5%, leading to the current volatility in the crypto market. Meanwhile, core PPI, which excludes energy, trade, and food, increased 0.6%, marking its biggest rise since March 2022. Technical Context and Market Outlook Bitcoin is now trading below the $120,000 level as it failed to absorb selling pressure in the immediate post-PPI volatility. Bull Theory noted that key support sits at $117,500, with a potential drop to $110,000 if it breaks. Meanwhile, resistance remains at $124,000. He urged the market to watch for the latest ETF report, as tariff-driven manufacturing pressures could influence next month’s CPI.

Bitcoin technical patternBitcoin technical pattern Notably, analyst Ali Ash described the short-term Bitcoin outlook as bearish, noting that a failed support-resistance retest has created a textbook “Upthrust Trap” that drained buyer liquidity. He identified $116,000 as the first key support, warning that a break below could open the door to $110,000.

Bitcoin looks bearishBitcoin looks bearish Meanwhile, Crypto Patel has earlier noted that a confirmed close above the $120,000 level could pave the way for Bitcoin to reach $150,000, while rejection risks a pullback toward $111,000 or even $100,883. Similarly, Crypto Rover expected a new all-time high if Bitcoin clears resistance at $121,500–$123,000.