As of August 3, 2025, Bitcoin’s price is navigating a complex landscape, with the leading cryptocurrency experiencing a slight daily downturn but showing promising signs of recovery on shorter timeframes. Trading between $113,924 and $114,016 over the past hour, Bitcoin commands a market capitalization of $2.26 trillion, underscoring its dominance in the crypto market. This article delves into the current price trends, technical indicators, market sentiment, and what investors might expect moving forward.
Daily Trend: A Temporary Pullback
Bitcoin’s daily chart indicates a modest decline, with prices slipping below the critical $115,000 support level. This drop follows a period of consolidation that lasted 16 days, ending with Bitcoin closing below its lower consolidation limit of $116,000 earlier this week. The breach of this level has sparked concerns among some analysts, who point to increased profit-taking by long-term holders as a key driver of the downward pressure. This selling activity aligns with a broader risk-off sentiment in financial markets, partly triggered by macroeconomic factors such as the U.S. Federal Reserve’s decision to maintain interest rates between 4.25% and 4.50% for the fifth consecutive meeting, alongside new reciprocal tariffs proposed by the Trump administration. These developments have contributed to a cautious market environment, with crypto liquidations surging as investors reassess their positions.
Despite the daily bearish tilt, the broader market context remains nuanced. Bitcoin’s supply in profit is nearing a two-month low, which some analysts interpret as a cooling market that could precede either a further decline toward $111,855 or a breakout above $120,000, depending on shifts in sentiment. The high trading volume accompanying the recent drop—$40.2 billion in the last 24 hours, down 36.9% from the previous day—suggests that selling pressure may be subsiding, potentially setting the stage for stabilization.
Hourly Chart: Signs of Recovery
In contrast to the daily trend, Bitcoin’s hourly chart offers a glimmer of optimism. After dipping to a local low of approximately $112,700, the price has shown resilience, climbing back to the $113,924–$114,016 range. Technical indicators on the hourly timeframe, such as the Relative Strength Index (RSI) dropping below 30, signal an oversold condition, hinting at a potential short-term bounce. This recovery aligns with historical patterns where Bitcoin revisits breakout points—such as the $111,960 level from May 22—before resuming its upward trajectory. A break above the current downward-trending channel on the hourly chart could pave the way for a push toward new highs, potentially testing resistance at $118,380 or even $119,018.
Bullish and Bearish Sentiment
Market sentiment is divided, reflecting the uncertainty in Bitcoin’s near-term direction. Bulls remain encouraged by Bitcoin’s long-term bullish trend, supported by a rising trend channel in the medium to long term and growing institutional adoption. For instance, companies like Strategy have raised significant funds to acquire Bitcoin for their corporate treasuries, bolstering demand. Additionally, the recent approval of in-kind creations and redemptions for crypto exchange-traded products (ETPs) by the SEC has fueled optimism about increased mainstream accessibility. These factors, combined with Bitcoin’s fixed supply cap of 21 million coins (with 19.9 million currently in circulation), underpin the bullish case for a potential rally toward $120,000 or higher.
Conversely, bears point to technical warning signs and macroeconomic headwinds. A bearish divergence on Bitcoin’s chart suggests a possible correction toward $92,000, a level seen in previous cycles. The high open interest in futures contracts (734.82K BTC, close to the October 2022 peak) indicates elevated leverage, which could amplify volatility if liquidations increase. Furthermore, concerns about Bitcoin’s energy consumption—each transaction requiring 1,173 kWh—continue to draw scrutiny, potentially impacting investor confidence amid growing environmental awareness.
What Lies Ahead?
For crypto investors and market analysts, Bitcoin’s current dynamics present both risks and opportunities. The interplay between short-term recovery signals and daily bearish momentum underscores the importance of monitoring key support levels ($111,960 and $110,000) and resistance zones ($118,380 and $120,000). While the hourly chart suggests a potential rebound, a sustained break above $120,000 would signal renewed bullish momentum, potentially targeting $129,584.15. Conversely, a failure to hold above $111,960 could see prices test lower supports, with $92,000 as a worst-case scenario.
Investors should remain vigilant, considering both technical indicators and external factors like regulatory developments and macroeconomic trends. As Bitcoin continues to mature as an asset, its ability to weather short-term volatility while maintaining its long-term bullish structure will be critical for its trajectory in the coming weeks.
