Bitcoin in Precarious Position as BTC Price Penetrates Bullish Trendline

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By Omkar Godbole|Edited by Parikshit Mishra

Aug 18, 2025, 11:51 a.m.

BTC in precarious position. (poupoune05/Pixabay)

Bitcoin has dropped over 7% since reaching record highs above $124,000,
Technical indicators suggest a bearish shift, with the weekly stochastic oscillator signaling a possible correction.

This is a daily analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.

Bitcoin

BTC$115,048.71

remains susceptible to further downside, having lost over 7% since hitting record highs above $124,000 on Thursday.

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The weekly chart (candlestick format) shows that BTC’s ongoing decline follows repeated bull failure to secure a foothold above $122,056, the Fibonacci golden ratio. It also marked the inability to keep gains above the significant long-term resistance trendline that connects the bull market highs of 2017 and 2021.

BTC's weekly chart. (TradingView/CoinDesk)

Additionally, the weekly stochastic oscillator has rolled over from the overbought zone above 80, signaling a potential correction ahead.

On the daily chart, BTC’s latest candle has broken below the bullish trendline extending from April lows, following Friday’s bearish outside-day candle that signaled a potential shift toward seller dominance.

Together, these technical signals indicate an increasing downside risk for BTC in the near term, with a potential retest of $11,982, the point from which the market turned higher on Aug. 3. A violation of this level would shift focus tothe 200-day simple moving average at around $100,000.

A potential reversal higher to above $118,600 (Sunday’s high) during the day ahead would weaken the bear case.

Resistance: $120,000, $122,056, $124,429.
Support: $111,982, $105,295 (the 31.8% Fib retracement of April-August rally), $100,000.

Omkar Godbole is a Co-Managing Editor and analyst on CoinDesk’s Markets team. He has been covering crypto options and futures, as well as macro and cross-asset activity, since 2019, leveraging his prior experience in directional and non-directional derivative strategies at brokerage firms. His extensive background also encompasses the FX markets, having served as a fundamental analyst at currency and commodities desks for Mumbai-based brokerages and FXStreet. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.

Omkar holds a Master’s degree in Finance and a Chartered Market Technician (CMT) designation.