Technical analysis of Bitcoin (BTC/USD) and trading recommendations for this week (August 24-30, 2025):
Technical analysis
Based on the available information from technical analysis sources and recent updates, it appears that Bitcoin is experiencing volatility with a slight upward bias, but it faces strong resistance at certain levels. Here’s a comprehensive look at the current situation:
1 Current price and recent movement:
◦ Bitcoin is currently trading around $113,744 (according to the latest updates from sources like Investing.com) with a slight decrease of -1.43% daily.
◦ The market has experienced noticeable volatility over the past weeks, with Bitcoin reaching record levels near $123,000 before retreating due to selling pressures and fluctuations in sentiment.
◦ The overall trend on the daily timeframe shows an upward correction after a previous sharp drop, testing important resistance areas.
2 Support and resistance levels:
◦ Support:
▪ Level $113,000: Considered an important psychological and technical support, as the price has previously bounced from this area.
▪ Level $108,000-$110,000: A strong potential support area in case of deeper correction.
◦ Resistance:
▪ Level $120,000: A major psychological and technical barrier, as Bitcoin has failed to close daily or weekly above it sustainably.
▪ Level $123,000-$124,000: Strong historical resistance, where the price recorded unprecedented highs before retreating.
◦ If $120,000 is breached with strong momentum and a weekly close above this level, the price may target levels of $130,000 or higher.
3 Technical indicators:
◦ Moving averages: The price is trading around the 50-day simple moving average, indicating a state of uncertainty. Staying above this average may strengthen the bullish outlook, while a break may lead to a deeper correction.
◦ Relative Strength Index (RSI): Shows slight selling overbought in some timeframes, which may indicate short-term rebound opportunities. However, the overbought conditions at higher resistance levels (such as $120,000) may limit upward movement without correction.
◦ Trading volume: A decrease in selling volume at key support levels is noted, supporting the possibility of a rebound from areas like $113,000.
4 Overall trend:
◦ In the short term (4-hour timeframe), Bitcoin appears to be in a corrective phase within a trading range of $108,000-$120,000.
◦ In the long term, the upward trend remains intact as long as the price maintains key support levels (above $108,000). However, failure to break resistance at $120,000 may lead to sideways movement or further correction.
5 Key fundamental factors:
◦ Market sentiment: Some posts on platform X indicate a bearish sentiment among retail traders at $113,000, which may enhance the chances of a rebound if this negative sentiment dissipates.
◦ Macroeconomic data: Increasing interest from institutional investors and positive economic data in the U.S. may support upward momentum.
◦ U.S. Federal Reserve policy: Statements from Federal Reserve officials opposing interest rate cuts have caused temporary selling pressure, leading to a recent drop in price below $112,000.
Trading recommendations for this week
Based on technical analysis and current sentiment, here are the trading recommendations for the week (August 24-30, 2025):
1. Scalping trades - Short-term
• Potential sell trade:
◦ Entry point: When testing resistance at $119,000-$120,000, especially if the price shows signs of rejection (such as forming a strong bearish candle or negative divergence in RSI).
◦ Stop loss: Above $121,000 (to limit risk in case of resistance breach).
◦ Targets:
▪ First target: $115,000 (risk/reward ratio 1:1).
▪ Second target: $113,000 (1:2 ratio).
◦ Reason for entry: Potential selling pressure at the main resistance $120,000 with potential overbought conditions.
• Potential buy trade:
◦ Entry point: When testing support at $113,000-$113,500, with confirmation of a rebound (such as a strong bullish candle or positive divergence in RSI).
◦ Stop loss: Below $112,000 (to protect against deeper corrections).
◦ Targets:
▪ First target: $116,000 (1:1 ratio).
▪ Second target: $118,000 (1:2 ratio).
◦ Reason for entry: Strong support at $113,000 with declining selling volume and potential selling overbought.
2. Swing trades - Medium-term
• Potential buy trade:
◦ Entry point: When testing $108,000-$110,000 if the price sees correction to this area, with strong support confirmation (such as forming an ascending bottom or strong rebound).
◦ Stop loss: Below $107,000.
◦ Targets:
▪ First target: $113,000 (1:1 ratio).
▪ Second target: $118,000 (1:2 ratio).
▪ Third target: $120,000 (1:3 ratio).
◦ Reason for entry: A historically strong support area with the likelihood of a strong rebound if the upward momentum continues in the long term.
• Potential sell trade:
◦ Entry point: When testing $123,000-$124,000 if the price reaches this area with clear signs of rejection.
◦ Stop loss: Above $125,000.
◦ Targets:
▪ First target: $120,000 (1:1 ratio).
▪ Second target: $116,000 (1:2 ratio).
◦ Reason for entry: Strong historical resistance with a potential correction after strong rallies.
3. Risk management
• Risk ratio: Do not expose more than 0.5-1% of capital in a single trade, especially with high volatility in the cryptocurrency market.
• Avoid emotional trading: Stick to the trading plan and avoid making decisions based on fear or greed, especially with current volatility.
• Follow the news: Monitor news related to U.S. monetary policy and regulatory developments, as they may significantly impact the price.
Summary of recommendations
• Current trend: Upward correction with strong resistance at $120,000 and key support at $113,000.
• Short-term strategy:
◦ Buy at support $113,000 with targets of $116,000-$118,000.
◦ Sell at resistance $119,000-$120,000 with targets of $115,000-$113,000.
• Medium-term strategy:
◦ Buy during correction to $108,000-$110,000 with targets up to $120,000.
◦ Sell when testing $123,000-$124,000 if signs of rejection appear.
• Important note: Financial markets are highly risky, and trades may lead to loss of capital. Be sure to conduct your own analysis and consult a financial advisor if necessary.
If you need a deeper analysis on a specific timeframe or additional details, let me know!
