🔥 Crypto Market Forecast – August 6, 2025

The crypto market is entering a decisive phase. Bitcoin is trading near $113,546 after briefly dipping below $115,000, pressured by renewed global trade tensions and cautious investor sentiment. Despite the dip, the market hasn’t turned bearish yet—Ethereum continues to outperform and drive optimism.

Ethereum has been the clear standout, climbing over 54% in the last month, fueled by strong inflows into newly launched spot ETFs from BlackRock, Fidelity, and Grayscale. These ETF volumes crossed $120 billion, signaling deepening institutional interest. This alone is keeping crypto bulls hopeful as ETH hovers near $3,600, holding stronger than most major tokens.

Technical signals suggest that Bitcoin is now in a post-liquidation reset zone, with nearly $922 million in liquidations washing out excessive leverage. Historically, such shakeouts create conditions for upside recovery. On-chain data also shows cooling profit-taking pressure, with BTC supply in profit slightly declining—hinting that the market top might not be in yet.

Still, caution remains. If Bitcoin fails to hold the $111K–$112K support range, it could trigger fresh bearish momentum. A break back above $116,800, however, may open the door to a rally targeting the $126K level. Ethereum’s dominance and ETF support could act as a backbone for the broader market recovery.

Heading into tomorrow, the market leans slightly bullish, with Ethereum strength and ETF momentum outweighing the short-term fear. But Bitcoin needs to hold its ground above support for this outlook to remain valid.