Bitcoin Prices in Turmoil: Steep 3% Daily Drop Indicates More Trouble Ahead?
In the world of cryptocurrency, Bitcoin has been facing some turbulence in its price movement recently. The digital currency has turned downward, breaching the lower threshold of the $116K to $123K range and moving back towards the lower end of the flag structure, around $114K. This recent drop has caught the attention of traders, as Bitcoin is currently testing a major support near this level.
The 4-hour chart shows Bitcoin's price movement within the shorter time frame. The price was recently rejected from the upper boundary of a rising flag near $118K, which could indicate a shift in market sentiment. A confirmed break below the $114K support level could lead to a long-squeeze scenario, pushing the price even lower.
However, if demand picks up and buyers regain control, a bounce towards the $118K zone remains possible in the short term. This support level coincides with the lower boundary of Bitcoin's long-standing price channel, providing a potential cushion for any potential rebound.
The Binance BTC/USDT liquidation heatmap shows a tense standoff between two significant liquidity pockets, one above $120K and another below $114K. These zones mark areas of high leveraged exposure, attracting institutional players and liquidity-driven moves. Any decisive move could unleash rapid and volatile price swings.
The reaction at the $111K zone could play a key role in shaping Bitcoin's mid-term trajectory. This area has been a significant point of interest in the past and could act as a pivotal point in the current price action.
Despite the current volatility, predictions for Bitcoin’s mid-term trajectory in August 2025 are generally bullish. Analysts expect Bitcoin to maintain a strong price range above approximately $115,000, with potential upside towards $128,000, supported by a solid support level around $115,000 that has held recently. Market momentum appears to be shifting positively, driven by declining exchange balances and improving investor sentiment, which could fuel a rebound and a month-long uptrend.
However, some caution is warranted, as trading volume has dropped, which alongside intensified selling pressure near decisive support zones, could induce short-term pullbacks or volatility. The predicted year-end 2025 price, based on expert consensus, is around $145,000 on average, with possible peaks near $162,000 and troughs down to about $87,000, reflecting a volatile environment but overall upward trajectory by year-end.
In summary, Bitcoin is holding firm above a critical support near $115,000, showing resilience against increased selling pressure, indicating a potential bullish rebound in the near term. Market conditions suggest cautious optimism with the risk of short-term pullbacks due to volatility and decreased trading volume. Year-end 2025 forecasts from experts average around $145,000 per BTC, but the path may involve fluctuations between roughly $88,000 and $162,000 before possibly advancing further in the longer term. This combination suggests a mid-term outlook for Bitcoin characterized by consolidation near key support, followed by a hopeful rebound supported by improving fundamentals, yet within an environment still susceptible to volatility and profit-taking.
- Technical analysis has become crucial for traders monitoring the price movement of Bitcoin as it tests a major support near $114K, with predictions for a mid-term trajectory above approximately $115,000.
- In the competitive world of cryptocurrency trading, Bitcoin's price drop below the $116K-$123K range and current standoff between two significant liquidity pockets (one above $120K and another below $114K) is attracting the attention of institutional players.
- The potential for a bounce towards the $118K zone, which coincides with the lower boundary of Bitcoin's long-standing price channel, highlights the importance of technical analysis in investing in Bitcoin and other digital currencies.
