Bitcoin Hovers in Mild Danger Zone as Profit-Taking Pressures Build

August 19, 2025 – Bitcoin’s recent surge is starting to lose momentum. Market data shows that the cryptocurrency’s Market Value to Realized Value (MVRV) ratio has touched +21%, which means many investors are already sitting on profits. This often leads to higher selling pressure and sideways price action.

At the time of writing, Bitcoin is trading near $115,269 (PKR 32,694,999). It remains just under its weekly all-time high of $124,000 (PKR 35,171,468).

Profit-Taking Begins

Analysts at Bitfinex say that without new macroeconomic factors, this rally could pause. The next big event is the Federal Reserve rate decision on September 17. Current CME FedWatch data shows an 84% chance of a rate cut, which could boost Bitcoin again.

Short-term traders have been locking in profits after the price hit record highs. However, institutional investors are still buying, which shows confidence in long-term growth. Weekend sell-offs swept through low-liquidity areas and triggered liquidations, but large buyers quickly stepped in.

Market Outlook

Bitcoin dropped about 2% back to $115,000, in line with the wider market pullback. Short positions worth $2.2 billion are waiting to be liquidated if Bitcoin climbs again. This adds short-term volatility, but big investors remain optimistic.

Wallets holding 10 or more BTC are still growing, a sign that institutions believe in future gains.

Key Levels to Watch

• Support lies between $115K and $117K.

• A fall below $115K may send prices down to $110K or lower.

• A breakout above $120K, especially after the Fed’s rate cut decision, could restart the rally.

The Road Ahead

The Bitcoin market is at a crossroads. Many traders are cashing out profits, while institutional buyers continue to hold and accumulate. The Federal Reserve’s September policy will play a crucial role in shaping Bitcoin’s next move.

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