Bitcoin Price Forecast – BTC Likely to Rally to $118K Soon

Highlights:

• Bitcoin is consolidating between $115,337 and $113,945
• Bitcoin could rally to $118k if the price rallies through $115,337
• Rising institutional demand could trigger a rally to $118k and higher

Bitcoin (BTC) has been in a consolidation since last week. When going to press, Bitcoin was trading at $114,382.99, down by a marginal 0.17% in the day. Even as the price shows negligible correction, Bitcoin trading volumes are on the rise. Volumes are up by 16.35% in the day to a high of $55.66 billion. This is a positive signal for BTC as it indicates that money is likely coming in at this time, when the price is relatively calm. Pointers to such accumulation are evident in moves that big institutions have been making in recent weeks. 

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Institutional Adoption of BTC Rising

For context, between July 28 and August 3, Strategy, one of the largest corporate holders of Bitcoin, spent around $2.46 billion on Bitcoin. This has pushed their total Bitcoin holdings to 628,791. The trend of large corporate buyers is also evident in the fact that in recent times, Satoshi-era holders of Bitcoin have been offloading their Bitcoin after holding for over a decade. Despite these large sell-offs, the price of Bitcoin remains in a stable range, unshaken by market moves. For context, one Bitcoin whale from the Satoshi era sold 80k Bitcoin.

JUST IN: Michael Saylor's STRATEGY bought $2.46 BILLION Bitcoin between July 28 and August 3 at an average price of $117,256 🔥

There is no enough $BTC for everyone pic.twitter.com/YK3gqspSId

— Emi Moon (@emitothemoon) August 4, 2025

This is a significant amount that, in the past, would have triggered a substantial correction in the price of Bitcoin. However, the price at this point is unmoved despite the selloff. It is an indicator that even as the large holders exit, another set of big money, this time institutional, is stepping in as a replacement. This may explain why the price remains stable even when the sell-offs take place. As the old sellers either stop selling or their wallets run out of BTC to sell, the strong institutional demand now chasing a smaller amount of Bitcoin could send the price to new highs. 

Traditional Retail Money Increasingly Finding Bitcoin Attractive

At the same time, Bitcoin is attracting traditional conservative retail money that is usually more comfortable with stocks due to their low volatility. Bitcoin has in the past experienced boom and bust cycles that led to corrections of up to 70%. However, analysts believe these extreme cycles are now a thing of the past and that Bitcoin could trade much more steadily going forward.

The #Bitcoin 4-Year Cycle is dead, says Bitwise CEO, Matt Hougan.

The irony is that these very claims from CEOs, whales, and influencers are what actually ensure the cycle keeps going, time and time again.

— Nayeem Jamaly Mishu 'The S0AS' 🐴 (@JamalyNayeem) July 30, 2025

One such analyst is Matt Hougan of Bitwise. Hougan believes that due to the ETFs and the rising institutional adoption of Bitcoin, the price is likely to move more steadily going into the future, devoid of the hype and crash around the halving. Traditional retail money that usually flows into stocks is likely to start flowing into Bitcoin as well, which means that Bitcoin could be headed higher going into the future. 

Possible Rate Cuts In the US Could Trigger Money Flow Into Bitcoin

Bitcoin also stands to benefit from the fact that the macro environment likely favors risk-on assets. While there is a lot of uncertainty around tariffs, the US has managed to strike trade deals with its most important trading partners. At the same time, with the US economy showing weakness, the odds of a rate cut in the US are on the rise. This is a factor that could favor risk-on assets such as Bitcoin going into the future. 

Technical Analysis – BTC Still In A Consolidation

Bitcoin is currently consolidating between the $115,337 resistance and $113,945 support. If bulls take control and push Bitcoin through the $115,337 resistance, then a rally to $118,705 could follow. 

On the other hand, if bears take control and push Bitcoin through the $113,945 support, then a correction to $112,214 could follow. Of these two scenarios, a rally to $118,705 could follow due to the rising institutional adoption.

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