Bitcoin (BTC) has recently experienced a concerning dip, breaking below a key multiyear uptrend support, sparking debate about whether this marks the beginning of a deeper correction or a temporary "fakeout". This development has rattled investors, especially after Bitcoin's failure to maintain momentum following its all-time high of $124,500 reached in mid-August.

Technical Analysis and Key Levels

Bitcoin's price is currently hovering around $108,475, reflecting a 1.44% decrease for the day and a 6.29% drop for the week. Several technical indicators suggest a bearish sentiment in the short term. The 4-hour chart reveals that Bitcoin is struggling below the 20-SMA, with the Relative Strength Index (RSI) at 35, signaling persistent bearish momentum. A break below the $110,000 level could potentially drag the price down to the $104,000 region or even below $100,000.

However, some analysts believe that the current breakdown is a "fakeout". This perspective suggests that any dips below $100,000 could present a buying opportunity before a strong recovery. Support is identified around $107,488, and failure to rebound quickly could lead to tests of $107,400 and possibly $105,000. Conversely, a close back above $111,000 might open the door to $114,000, where sellers are likely to defend.

Analyst Perspectives

Popular crypto analyst BitBull describes the current breakdown as a likely "fakeout," arguing that even a capitulation wick below $100,000 would be consistent with Bitcoin's past behavior of shaking out weak hands before staging a strong recovery. Market analyst SuperBro echoes this sentiment, noting that the Pi Cycle Top model, which has reliably signaled Bitcoin's past cycle peaks, has not yet occurred, suggesting that Bitcoin has not yet reached its cycle peak.

Other analysts, however, are more cautious. Trader Roman emphasized the importance of the $112,000 mark, suggesting that failure to hold this level could lead to a drop to $102,000. Rekt Capital highlighted the significance of reclaiming $114,000 as support to avoid a prolonged correction period.

Potential Scenarios

Several scenarios are being considered by analysts:

• Bullish Reversal: If Bitcoin can reclaim and maintain the $114,000 level, it could signal a continuation of the uptrend and potentially lead to a rally towards $116,000-$117,000.
• Deeper Correction: Failure to hold key support levels, particularly $112,000 and $110,000, could result in a more significant correction, potentially driving the price down to $103,000 or even $100,000. Some analysts suggest a possible decline towards $80,000 by the end of 2025 if the Relative Strength Index (RSI) breaks below its uptrend support.
• "Fakeout" Scenario: The current dip could be a temporary "fakeout" designed to shake out weak hands before a strong recovery. In this case, the $80,000–$100,000 range may be a target for bears and a potential springboard for the next leg higher.

Market Factors

Several factors are influencing Bitcoin's price action:

• Whale Activity: A Satoshi-era wallet offloaded a significant amount of Bitcoin, triggering liquidations and contributing to downward pressure.
• Derivatives Overheating: High levels of open interest in crypto derivatives can magnify volatility during corrections.
• Macroeconomic Jitters: Concerns about delayed Federal Reserve rate cuts and potential U.S.–EU tariffs are creating uncertainty in the market.
• Exchange Netflows: Exchange netflows have leaned more bearish than bullish since April, with more Bitcoin leaving exchanges than entering, signaling a preference for holding rather than selling.

Predictions

Despite the current volatility, various sources offer price predictions for Bitcoin:

• CoinCodex predicts that Bitcoin will increase to $119,948 in August 2025, with a potential trading range between $109,407 and $125,051.
• Changelly's most recent forecast indicates a potential increase to $113,992.69 by August 30, 2025.
• Some analysts suggest that Bitcoin could reach $117,000, which could lead to Ethereum reaching $5,000.
• A more bullish prediction suggests that Bitcoin's price could top at $280,000.

Conclusion

Bitcoin's recent price action has created uncertainty and debate among analysts and investors. While the loss of a key multiyear support trendline is a concerning development, some believe it to be a temporary "fakeout" before a renewed uptrend. The cryptocurrency market fell by 0.8% in the past 24 hours, extending a 6.5% weekly decline. It is crucial to monitor key support and resistance levels, as well as market factors and analyst perspectives, to make informed decisions in this volatile market.