Bitcoin Plummets on August 3: Market Panic or Buying Opportunity?

On August 3, 2025, the price of Bitcoin (BTC) continued to decline, briefly falling below $112,000, with a low of $111,952, marking a 24-hour drop of 1.28%. This decline has sparked widespread controversy in the market, raising the question of whether it is a buying opportunity during a short-term adjustment or the beginning of a larger correction.

Technical Breakdown vs. Long-Term Bull Market Support

On August 3, Bitcoin tested the $112,000 support level multiple times, and some analysts warned that if it falls below $111,000, it could further drop to $110,000. However, long-term holders still control 53% of the Bitcoin supply, suggesting that market selling pressure may be limited.

Macroeconomic Impact vs. Market Overreaction

This decline is related to weak U.S. non-farm employment data for July, which has heightened market concerns over an economic recession, prompting traders to increase bets on a rate cut by the Federal Reserve in September. Some investors believe that if the Fed shifts to an easing policy, Bitcoin could rebound, but opponents point out that cryptocurrencies have recently decoupled from U.S. stocks and may face a deeper correction.

Is the “Buy the Dip” Strategy Still Effective?

Despite the market downturn, notable figures like Eric Trump have publicly called for a “Buy The Dip,” and analyst Van de Poppe also believes the current adjustment presents a good opportunity to accumulate. However, historical data shows that Bitcoin has declined in 8 out of the last 12 years during August-September, with a probability of 67%.

Conclusion: Market Discrepancies Intensify, Investors Should Be Cautious

The price movement of Bitcoin on August 3 highlights the high uncertainty in the crypto market. The short-term technical outlook is bearish, yet long-term holders remain steadfast. Investors need to weigh risks and avoid blind buying or panic selling.

Do you think Bitcoin will rebound soon, or will it continue to decline? Feel free to leave your opinion in the comments!$BTC