Bitcoin is holding steady near $118,000, prompting market analysts to explore whether the cryptocurrency is preparing for a temporary pullback or a prolonged sideways move. Focused on Bitcoin’s performance and its influence on other digital assets, this analysis highlights key support zones and emerging altcoin opportunities.

Bitcoin at Crossroads: Key Support Around $108K–$112K

Prominent crypto analyst Lark Davis suggests that if bitcoin continues its current downward drift, it may find stability between $108,000 and $112,000. This region previously served as a resistance ceiling, making it a powerful candidate for future support due to the well-known behavior in technical analysis where past resistance often transforms into support.

Davis highlights that this zone also aligns with two well-regarded Fibonacci retracement levels: 50% and 61.8%. These percentages are derived from bitcoin’s previous rally, and many traders use them as markers where trends tend to pause or reverse.

Adding further weight, the 20-week exponential moving average is currently climbing toward this range. The convergence of these technical signals—historical resistance, Fibonacci retracements, and moving averages—is what traders refer to as a “confluence zone.” This concentrated set of indicators suggests a likely area where price may bounce if bears push it downward.

Davis emphasizes this isn’t a sign of a breakdown, but rather a “healthy reset” that could provide bitcoin with the footing it needs for the next upward leg.

Sideways Action as Altcoins Show Signs of Life

Offering a slightly different scenario, analyst Michaël van de Poppe notes that bitcoin recently failed to sustain a move above recent highs—a bearish signal indicating potential for a pause, not necessarily a decline.

Using a TradingView chart, he points out that bitcoin has repeatedly hit the top end of its price range only to fall back, leaving candlestick “wicks” which signal strong selling pressure at those levels. This resistance suggests that traders are reluctant to take positions above this threshold until the market gathers more momentum.

TradingView chart showing Bitcoin rejection at resistance and potential base forming below.

Van de Poppe sees this sideways range as a necessary calm period that could allow unnecessary leverage to be flushed from the system. Once volatility cools, altcoins—particularly larger ones like ether—often become more appealing to investors looking for higher returns.

This rotation into altcoins rarely occurs during sharp bitcoin declines, but when BTC consolidates, smaller tokens can see renewed interest. Van de Poppe believes this rotation may already be in motion.

Different Paths, Same Outlook

While Davis leans toward a brief decline into a confluence-supported zone, and van de Poppe envisions price moving sideways, both views predict continued bullish structure for bitcoin. They simply differ in the route it might take—either downward into support or across a horizontal trading band.

For crypto investors and market watchers, the key action points include monitoring whether bitcoin drops closer to the $108K–$112K level or stabilizes within its current range. Both scenarios could set the foundation for further gains and open the door for select altcoins to outperform.

Related: Cardano Bull Setup Points to December Rally

Recent Technical Signals

• From Aug. 16, 15:00 UTC to Aug. 17, 14:00 UTC, Bitcoin rose modestly, climbing from $117,847.02 to $118,485.32—a 1% gain.
• Support emerged early on Aug. 17 near $117,261.72, followed by a bump above $118,000. This spike was accompanied by heightened volume totaling 2,848.15 BTC across multiple sessions.
• In its final hour, bitcoin increased from $118,165.31 to $118,397.67, including a sharp uptick to $118,604.10 fueled by 679.81 BTC in volume.
• This movement established short-term resistance just under $118,600, with current prices hovering around $118,400—suggesting room for another push higher if conditions align.

In summary, Bitcoin’s near-term direction remains uncertain, with analysts split between a possible retracement to strong support and a consolidation that sets the stage for altcoin leadership. Either way, the prevailing sentiment remains cautiously optimistic.