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Bitcoin Drops 3% to $115K but Cycle Analysis Hints at Bullish Setup for Final Uptrend

Bitcoin Drops 3% to $115K but Cycle Analysis Hints at Bullish Setup for Final Uptrend

CryptonewslandCryptonewsland2025/08/18 21:20
By:by Wesley Munene
  • Bitcoin fell from $118,500 to near $115,000 in today’s Asian session, losing almost 3% in 24 hours.
  • Current cycle patterns mirror 2017 and 2021, where quick retraces preceded strong price discovery phases.
  • A shallow retrace now could establish the technical base for Bitcoin’s final uptrend in this cycle.

During today’s Asian trading session, Bitcoin, the first and largest cryptocurrency by market capitalization opened its market value at $118K zone. However, this has not been the trend as the asset has leaned on the downward side noting over 2% dip. Without any signs of consolidation or slight uptick, many ,market analyst have hinted at the next move that will follow with many prospects pointing to a possible $120K rebound.

What is the Current Market Action?

Tracking the ongoing performance at the time of writing this piece, CoinMarketCap data reveals that Bitcoin exchanges at a price value of $115,006.60 after recording a 24-hour decline of 2.96%. The chart indicates the price reached above $118,500 before starting a continuous downtrend. During early trading hours, the asset fell sharply from near $118,000 to below $116,000. 

Source: CoinMarketCap

The movement showed several small rebounds, but none managed to restore the earlier price levels. Around midday, Bitcoin briefly dipped under $115,000, touching the lowest point of the session. Afterward, the price stabilized with minor fluctuations between $115,000 and $116,000. Toward the end of the session, the chart shows slight recovery attempts, yet Bitcoin remained near $115,000 with limited momentum.

Bitcoin Cycle Mirrors Past Trends as Market Eyes Possible Retrace

Bitcoin’s current cycle development shows recurring patterns observed during previous market rallies in 2017 and 2021. Rekt Capital notes that both of those cycles featured short-lived retraces that occurred before price acceleration into final discovery phases. In 2017, Bitcoin underwent a one-week retrace with a decline of nearly 29%. In 2021, the retrace extended across three weeks but was shallower, registering around 25%. 

Source: X

These corrections were notable for being quicker and less severe compared to earlier downturns in the same cycles. Historical analysis shows that these shallow retraces became essential components in building technical foundations for subsequent upward trends. Chart data for 2025 indicates that Bitcoin is approaching conditions where another retrace could emerge.

If the market repeats earlier behavior, the correction would likely remain shallow and brief. Historical cycles demonstrate that retraces of this nature played a key role in preparing the market for the strongest phase of price discovery. Technical comparisons to 2017 and 2021 underline the possibility of a short retrace forming the base for another advance. A controlled pullback at this stage could align with prior cycle dynamics and set conditions for Bitcoin’s final uptrend in the current cycle.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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