Bitcoin Price Drops 4% to $117,460 Despite Record High as Inflation Data Triggers Correction

Quick Take

• BTC currently trading at $117,460 (-1.31% in 24h)
• Bitcoin’s RSI at 51.21 signals neutral momentum after volatile week
• Record high of $124,480 followed by 4% correction on inflation concerns

What’s Driving Bitcoin Price Today?

The BTC price experienced dramatic volatility this week, reaching a new all-time high of $124,480 on August 14th before surrendering gains following U.S. wholesale inflation data. The correction brought Bitcoin down approximately 4% to current levels around $118,000, highlighting the cryptocurrency’s sensitivity to macroeconomic indicators.

Treasury Secretary Scott Bessent’s statements on August 14th initially created uncertainty in the market. His clarification that the U.S. government isn’t planning immediate Bitcoin purchases, followed by his comments about remaining “open to acquiring more bitcoin through budget-neutral pathways,” contributed to mixed sentiment. This regulatory ambiguity occurred precisely as the BTC price was testing new highs.

The Federal Reserve rate cut expectations that helped propel Bitcoin to record levels were temporarily overshadowed by inflation concerns. Despite the short-term pullback, institutional demand remains robust, with spot ETF inflows and the new executive order allowing crypto in 401(k) retirement plans providing underlying support for the BTC price trajectory.

BTC Technical Analysis: Neutral Signals Emerge

Bitcoin technical analysis reveals a market in consolidation after the recent rally and subsequent correction. The BTC RSI currently sits at 51.21, positioning Bitcoin in neutral territory and suggesting neither overbought nor oversold conditions. This reading indicates potential for movement in either direction based on upcoming catalysts.

The MACD indicator shows bullish momentum with a positive histogram reading of 7.5330, suggesting underlying buying pressure despite the recent price decline. Bitcoin’s position relative to its moving averages remains constructive, with the current price of $117,460 sitting above both the 20-day SMA at $116,948.73 and the 50-day SMA at $115,351.19.

Bitcoin’s Bollinger Bands indicate the cryptocurrency is trading in the upper half of its recent range, with a %B position of 0.5518. The daily ATR of $2,919.81 reflects elevated volatility, typical during periods of significant price discovery near all-time highs.

Bitcoin Price Levels: Key Support and Resistance

Based on Binance spot market data, Bitcoin support levels are clearly defined following the recent correction. The immediate BTC resistance level sits at $124,474, representing the area where selling pressure emerged during the record high attempt. This level will be crucial for any renewed bullish momentum.

On the downside, Bitcoin support levels are established at $111,920 for immediate support, with stronger support at $105,100. The current trading range between $116,803.99 and $119,130.77 over the past 24 hours provides short-term reference points for traders.

The pivot point analysis suggests $117,798.39 as a key level, with the current BTC price trading slightly below this threshold. A sustained move above this pivot could signal renewed bullish momentum toward the recent highs.

Should You Buy BTC Now? Risk-Reward Analysis

For aggressive traders, the current BTC price presents a potential opportunity to buy near-term dips, with the understanding that Bitcoin resistance at $124,474 provides a clear target. The risk-reward ratio appears favorable for those willing to accept volatility, with stop-losses below $111,920 offering defined risk parameters.

Conservative investors might wait for clearer direction given the mixed signals. The neutral BTC RSI suggests the market could move either direction, making patience potentially rewarding. Dollar-cost averaging could be appropriate given the current consolidation phase.

Swing traders should monitor the $117,798 pivot level closely. A break above with volume could signal continuation toward Bitcoin resistance levels, while failure to hold could target the $111,920 support zone. The elevated ATR suggests position sizing should account for increased volatility.

Conclusion

The BTC price action reflects typical behavior near major psychological levels, with the recent record high followed by a healthy correction. Bitcoin technical analysis suggests a market in neutral territory, awaiting the next catalyst. Traders should focus on the key levels between $111,920 support and $124,474 resistance over the next 24-48 hours, with macroeconomic data likely to drive the next significant move.

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