Bitcoin may currently show signs of being oversold in the short term, increasing the risk of breaking through key support levels.

According to news from Hash World, Matrixport's recent weekly report (Matrix on Target) indicates that Bitcoin has recently entered an adjustment phase, showing signs of weakening market momentum, declining trading volume, and low funding rates, indicating that the market structure is loosening. Due to seasonal disturbances in August and external uncertainties, short-term sentiment is becoming cautious. From a technical perspective, the $112,000 support level played a role during the initial pullback, but the rebound strength was insufficient, and this support level may face another test. If it fails, market attention may shift to the $106,000 range. The report further points out that the repricing of U.S. economic growth expectations could be a key factor in the rebound of Bitcoin volatility. Currently, some areas of the U.S. economy are experiencing a slowdown, the ISM manufacturing index continues to contract, the expansion of non-manufacturing indicators is limited, and recent employment data has also been significantly revised downwards. Market expectations for the Federal Reserve to potentially lower interest rates in September are gradually increasing, but no clear signals have been released yet, which may lead to extended consolidation. Additionally, the report mentions that the net asset value (NAV) of some publicly traded companies holding large amounts of Bitcoin has shrunk, which may weaken their ability to raise funds through issuing new shares to increase their Bitcoin holdings. In the short term, oversold technical indicators may indicate the possibility of a rebound, but the report is cautious about the sustainability of that rebound, leaning more towards the view that prices will continue to consolidate sideways. Investors need to patiently wait for clear bottom signals or a resurgence in market momentum.