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- Key Bitcoin price support levels are seen at $112,800 and $112,000, backed by the 23.6% Fibonacci retracement and 50-day EMA.
- Jerome Powell is likely to keep his cards closed on interest rate cuts at the upcoming Jackson Hole meeting this Friday.
Amid the ongoing Bitcoin price correction, the BTC fear and greed index has slipped into the “fear” category as retail players resort to panic selling. As a result, BTC dropped to a two-week low under $113,000 earlier today as investors backed out of positions ahead of a Federal Reserve conference at Jackson Hole and new geopolitical cues about the possibility of Russia-Ukraine discussions.
Bitcoin Price Moves Sideways After All-Time Highs
Following its all-time high at $124,000, Bitcoin price has been continuously moving sideways with rising selling pressure as bears take the charge, as mentioned in our previous report. The BTC price drop came as stronger-than-anticipated U.S. economic data dampened hopes that the Fed would accelerate its policy transition.
Investors now focus on it with the annual meeting of the central bank in Wyoming, with Chair Jerome Powell due to speak on Friday. The CME FedWatch tool now suggests a strong probability for a 25-basis-point reduction in September, reducing previous wagers of more intense easing. A hawkish stance by Powell may exert additional pressure on the risk assets, including digital assets like Bitcoin, as reported by CNF.
In addition to macro drivers, volatility has increased in terms of positioning in the crypto markets. CoinGlass data are consistent, showing more than $1 billion in leveraged bets liquidated in the recent sessions. Long trades, or bets expecting prices to rise, made up about 95% of those losses.
Here, Ethereum and Bitcoin accounted for $170 and $104 million positions being removed, respectively. Analysts explained this event as a repricing of over-extended bullish positions and not a longer-term change in trend, but liquidating sales took on a cascading nature.
Another headwind is the emergence of a profit-taking trend. The BTC market value to realized value (MVRV) is around 21% indicating that the average holder is in profit, as mentioned in our previous story. Based on the MVRV pricing bands, the next support for Bitcoin price is at $112,800.
MVRV Pricing Bands point to $112,800, $91,400, and $70,000 as the next big support levels for Bitcoin $BTC. pic.twitter.com/oWnwFEnAZ7
— Ali (@ali_charts) August 20, 2025
BTC Charts to Watch Ahead
The critical support for Bitcoin price is around $112,000, as shown by the chart signals and supported by the 23.6% Fibonacci retracement. However, even though the price has broken the trendline drawn since April, Bitcoin continues to trade above a 50-day Exponential Moving Average. This trend has been supportive of bullish sentiment over several months.
Another support is just above the $100,000, as well as the $103,000, where a 200-day EMA offers a wider base. The resistance levels are witnessed at $ 120,000 and $ 124,000. Market breadth data is less clear, though. Most major cryptocurrencies are still trading above their 200-day averages, although half of them now trade below their 50-day lines, echoing declines seen across equities such as the Nasdaq.
