Bitcoin (BTC) has recently experienced a decline of about 7.8% over the past three weeks amid a broader correction across the cryptocurrency market, according to Cointelegraph. This drop saw Bitcoin briefly dip below important support levels like $115,000 and around $112,000, driven partly by heavy selling pressure from both whale investors and short-term holders moving coins to exchanges. The market sentiment currently shows some bearish signals, such as bearish divergences in momentum indicators and an increase in profit-taking that have analysts cautious about deeper pullbacks possibly toward $104,000 or even $92,000 in a mid-cycle correction.
However, despite this correction, analysts suggest this downturn might be the final shakeout before Bitcoin resumes a strong upward trajectory. Bitcoin has recently reclaimed its 50-day exponential moving average (EMA) as support after briefly falling below it—a positive technical sign signaling potential stability and readiness to climb higher. Several bullish voices expect Bitcoin to potentially reach new all-time highs, with price targets around $138,000 to $150,000 over the coming months, especially as August historically can be a strong month following halving cycles. Institutional buying and accumulation by treasury companies may also support the uptrend.
In summary:
BTC fell about 7.8% during the recent 3-week market correction.
Heavy sell-offs by whales and short-term holders pushed BTC below key supports near $115K and $112K but it’s bounced back onto its 50-day EMA support.
Bearish momentum signs exist, suggesting some risk of deeper pullbacks to $104K or lower in a mid-cycle correction.
Many analysts view this as a final shakeout before a potential major rally toward $150,000 or beyond in the months ahead.
Institutional interest and historical August trends may fuel the bullish momentum.
This mixed picture points to a volatile but potentially rewarding period ahead for Bitcoin holders, emphasizing the importance of watching key support levels and market cues closely.