Bitcoin Price Prediction – BTC Likely to Drop to $113K Ahead of Jackson Hole

Highlights:

• Bitcoin has broken down after an early-day consolidation
• Bearish breakdown is a result of fears that rates may not come down in September
• BTC investors are awaiting the Fed chairman’s speech at Jackson Hole for clarity 

Bitcoin is in the red today, a reflection of the weak start to the week for most risk-on assets. When going to press, Bitcoin was trading at $115,068, down by 2.71% in the day. An increase in trading volumes has also accompanied Bitcoin’s intraday correction. Bitcoin trading volumes are up by 36.24% in the day to stand at $63.85 billion. 

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This is a strong indicator that short-term holders may be exiting their positions in anticipation of a further slide in the price of BTC. Bitcoin’s rising volumes amidst a dropping price reflect current data on longs and shorts and the macro environment. 

Bitcoin Longs Face Massive Liquidations

Bitcoin trading data shows that long liquidations have surged in the last 24 hours. In this period, BTC longs liquidated have risen to more than $100 million. The selling pressure was so intense that in only 4 hours, $80 million worth of longs got liquidated. Overall, over $200 million in long positions across the cryptocurrency market have been liquidated in the last 24 hours. Such liquidations indicate that short sellers are increasingly gaining strength and could push Bitcoin lower in the short term. The ongoing loss of confidence in short-term Bitcoin longs reflects the macro environment.

🚨 $100 million worth of crypto longs were liquidated in the past 60 minutes.

This as Bitcoin falls below $116,000 & Ethereum below $4.3K.

What just happened? pic.twitter.com/04g7Bj9X3h

— Jesse Cohen (@JesseCohenInv) August 18, 2025

Price Correction Driven By Fears Rates Could Remain High

The recent Bitcoin price rally was driven by expectations that the US would cut rates in September. Low rates tend to drive liquidity into risk-on assets, and cryptocurrencies like BTC tend to benefit the most. However, these hopes are increasingly diminishing. This is after stronger-than-expected US wholesale prices, which have led many to take a wait-and-see approach to rates. Investor attention now shifts to the Jackson Hole Symposium, which is expected to take place between August 21 and 23.

This week, Wall Street's attention will be directed toward the annual Jackson Hole Economic Policy Symposium, scheduled to take place from August 21st to 23rd.$SPY $QQQ $TSLA $NVDA $AMD #AI #TECH #TECHNOLOGY #StockTrading #StockMarket pic.twitter.com/nivXdvDAOh

— Stocktalk Foru (@stocktalkforu) August 17, 2025

The Federal Reserve Chairman is expected to speak during this symposium, and his speech will hint at the next step on interest rates. If his speech points to a potential rate cut, BTC and other risk-on assets could resume the rally they have experienced. However, if his speech hints at a possible continuation of the current interest rate environment, Bitcoin and other risk-on assets could further decline.

Institutional Buyers Likely to Support BTC Price Regardless of Rates

Despite a weak macroeconomic environment, Bitcoin’s correction may not be as steep as that of many other cryptocurrencies. That’s because institutional demand continues to rise despite the weakness in the macro environment. For context, MetaPlanet, a Japanese company known for its pro-crypto stance, has announced that it has bought 775 Bitcoin worth $94 million.

BREAKING: 🇯🇵 Metaplanet buys additional 775 Bitcoin (¥13.7 billion)

Total holdings: 18,888 BTC (¥284 billion) pic.twitter.com/98A6N0rL43

— Mayank Dudeja (@imcryptofreak) August 18, 2025

This puts their total Bitcoin holdings at 18,888 Bitcoin worth $1.95 billion. This puts MetaPlanet in the same league as Strategy and other top global holders of Bitcoin. The same trend is happening globally. In Europe, a Dutch company called AMDAX is developing a Bitcoin treasury. All these point to the strong underlying demand for Bitcoin regardless of what is happening in the macro environment. 

Technical Analysis – BTC Bearish Intraday

After consolidating earlier in the day, Bitcoin faced a bearish breakdown, losing $117,340 in support. If bears sustain momentum, Bitcoin could drop to around $113k in the short term. 

On the other hand, if bulls regain momentum, the key level to watch would be $117,340, which is now resistance. A rally through this price that pushes the intra-day range resistance at $118,503 could see BTC retest $123,682 in the short term.

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