Bitcoin is now sitting close to a strong support at $113K and traders are watching for an RSI bounce.
The chart setup shows a pattern that last appeared before Bitcoin moved to a high above $130K earlier.
If $113K holds and RSI confirms bounce then traders could aim for $123K and later the $140K breakout.
Bitcoin (BTC) is approaching a critical support zone at $113,000 as traders monitor a 4-hour Relative Strength Index (RSI) bounce area. The latest chart by analyst TommyJR shows BTC near this zone, suggesting that any deeper decline could target levels from the May peak. On August 2, BTC was trading at $113,893.58, with the RSI signaling potential oversold conditions.
https://twitter.com/tempo_cap/status/1951404639347417357
The technical chart outlines a broader parabolic structure that mimics the late 2020 and early 2021 correction-to-breakout pattern. This model suggests BTC may currently be in the retest phase after setting a new all-time high (ATH). The yellow trajectory on the chart outlines a steady climb toward $140,000, unless invalidated by a significant support break.
Could Bitcoin’s current structure lead to another full retracement or will it echo previous recovery cycles to set higher targets?
RSI Bounce and Structural Similarity With 2020–2021
The current pattern on the 4-hour chart includes a cup-like curve, resembling the late 2020 through early 2021 pre-pump correction. In that cycle, BTC retraced sharply before launching toward new highs, a pattern that appears to be repeating. This visual pattern aligns with the same levels and movement arcs in the current chart.
BTC has already printed an ATH this year and formed a rising wedge channel, followed by a short consolidation. The RSI, now nearing a key bounce level, previously led to sharp reversals during earlier cycles. Traders are watching closely for a confirmation signal to suggest whether the current down move is temporary.
If the RSI holds at this support zone, analysts suggest a bounce could target $123,182.67 and potentially $125,000. However, if the support fails, the next range could extend down toward $105,000 or lower, creating a broader structure reset.
Key Levels Show BTC Could Revisit May Highs or Deeper Zones
The May highs near $123K now serve as immediate resistance if Bitcoin begins a recovery. The orange and green trendlines offer long-term directional support, while the red ‘X’ on the chart warns of possible invalidation if price action collapses. A sustained drop below the green ascending trendline could open room for further losses.
Currently, BTC trades just above the 200-period simple moving average (SMA) and near the 21-period exponential moving average (EMA) at $113K. These dynamic levels have held multiple times throughout the year and are being monitored for short-term positioning.
The RSI is also approaching its oversold region, which may strengthen the case for an immediate bounce. If confirmed, the bounce could shift momentum back above $120K. Traders are also cautious about the downside scenario, which could invalidate the structure below $111,984.
Market Sentiment Hinges on RSI and Trendline Holds
TommyJR’s post on X gathered over 2,200 views, pointing to renewed interest in technical confluence zones. His post included a question on whether the market could retrace to earlier May levels, drawing replies from observers about seasonal BTC behavior. RSI levels and previous high zones remain focal points for swing traders and technical analysts.
The projected arrow targets shown in blue suggest a possible climb to $140,000 if conditions align with previous breakout patterns. Market participants are waiting for price action to confirm whether BTC’s structure follows previous cycles or diverges toward deeper lows. Until then, support at $113K may play a decisive role in the coming days.
