Bitcoin Shows Modest Bounce After Sharp Pullback, Eyes $131K Next

Following a notable dip at the end of July, Bitcoin has started to rebound over the last week, climbing about 2.73% based on CoinMarketCap figures. Despite this recovery, the rally lost steam, pushing $BTC back to hover near $116,000. The market is now waiting for clear cues, as accumulated data hints at a possible strong rally toward fresh highs.

Key Support Zone: The Golden Ratio Level

On August 8, market analyst Donald Dean shared a bullish outlook for Bitcoin on X, highlighting the daily BTC/USDT chart where a ‘volume shelf’ an area with significant trading activity is developing around $116,000 to $118,000. Dean suggests if BTC maintains stability and builds up here, buying momentum could propel it upward, acting as a springboard for a breakout.

He anticipates that after this consolidation, Bitcoin could push toward the 1.618 Fibonacci extension level, often called the ‘golden ratio,’ near $131,000. This would represent a roughly 13% gain from current levels.

Bitcoin Market Snapshot

Currently, BTC trades around $116,670, showing a slight decline of 0.02% in the last 24 hours. Trading volume has fallen nearly 21% to $55.24 billion. According to CoinCodex, market sentiment remains largely bullish with the Fear & Greed Index at 67, signaling ‘greed.’ Still, many experts expect Bitcoin to remain range-bound in the short term:

5-day outlook: near $117,167

30-day outlook: roughly $115,980

3-month outlook: possible dip to $112,688 before recovery.

Summary

Bitcoin is currently testing a crucial support and accumulation zone. A breakout above $118,000 backed by strong buying interest could see it surge to $131,000. However, traders should stay cautious, as the path to this level may involve some short-term pullbacks.