Bitcoin has ended its two-month bull trend with a drop below $115,000, signaling a shift in market sentiment. This article examines the key reasons and current trends.
Overview of Bitcoin's Decline
On August 18, 2025, Bitcoin fell below $115,000, indicating a significant break from a two-month rally. The decline of 7.6% followed a recent high of $124,501, achieved just four days earlier. This drop was triggered by a breakout from a key technical pattern known as a rising wedge.
Active Addresses Dynamics
The number of active Bitcoin addresses over recent months has ranged from 700,000 to 1.2 million. Despite hitting new all-time highs, active participation has not seen consistent growth, suggesting insufficient engagement from retail investors. According to CryptoQuant, the active address count peaked at 994,288 on August 14 but has since fallen by over 160,000.
Short-Term Holder Trends
Short-term holders of Bitcoin are beginning to realize losses, a trend not seen since January 2025. Since that time, the market had generally allowed short-term holders to sell at profits. However, recent metrics have shown that many are selling at a loss, indicating potential momentum decay and an onset of correction.
In the current environment, Bitcoin is at a critical support level between $115,000 and $116,000. Successfully maintaining these levels may lead to upward movement towards $121,000, but any breakdown below $115,000 could prompt further declines.
