Date: August 4, 2025
The cryptocurrency market is now at risk of a downturn after several months of bullishness. The price of Bitcoin has come under pressure after reaching a key resistance level, causing increasing concern among investors.
Bitcoin's technical situation
The weekly chart shows that there has been a failure to maintain the price above the macro trend line connecting the peaks of the bull market during 2017 and 2021. Following this failed breakout, notable weakness in the MACD histogram and the continuous weakening of the 14-week RSI after breaking the uptrend line further reinforces the bearish trend.
A clear decline in momentum is also being observed on a daily basis. Three consecutive red bars on the three-line break chart are evidence of seller dominance. These indicators increase the possibility that Bitcoin could break the close support level of $111,965 and reach the $100,000 level.
To eliminate this bearish pressure, the price must break the resistance of at least $122,056.
XRP's situation
On the other hand, XRP is challenging the correction trend but the momentum is not strong enough for an immediate breakout. The 38.2% Fibonacci retracement level is hindering its advance while the 5, 10, 50, 100, and 200-hour simple moving averages are supporting the bearish trend.
If the price closes above $3.00, the next target will be $3.33.
Performance of Ethereum and Solana
Ethereum has formed a major bearish candle with a nearly 10% decline last week. The bearish cross of the 5 and 10-day SMA and two consecutive red bars on the three-line break chart strengthen the bearish signal.
After the recent decline in Solana's price, strong support is being found at the 61.8% Fibonacci retracement. Interestingly, the anticipated golden cross of the 50 and 200-day SMAs could be a positive signal for the long term; however, the short-term trend is still bearish.
Overall scenario
Overall, the crypto market, including Bitcoin and other major cryptocurrencies, may face a deep correction in the near future. The $100,000 level will be a key psychological and technical barrier for Bitcoin, breaking which could lead to further declines in the market.