Bitcoin has recently shown signs of losing its bullish momentum, leading to speculation about a potential price drop. After reaching a new all-time high of $123,218 on July 14, 2025, the cryptocurrency has been trading in a sideways range between $116,000 and $120,000. Several factors suggest that this consolidation phase might lead to a downward correction, with some analysts pointing to a possible decline towards the $115,000 level.
One of the key indicators signaling potential weakness is a hidden bearish divergence observed in Bitcoin's Relative Strength Index (RSI). This divergence occurs when the price makes higher highs, but the RSI forms equal or lower highs, suggesting that the momentum behind the rally is weakening. A similar pattern emerged in March 2024, preceding a 20% price drop, raising concerns among traders.
Another factor contributing to the bearish outlook is the presence of a CME gap between $114,380 and $115,635. CME gaps arise when Bitcoin trades outside regular hours on the Chicago Mercantile Exchange (CME), creating price voids that tend to be filled during subsequent trading sessions. Historically, Bitcoin has shown a tendency to revisit these levels, increasing the likelihood of a short-term dip to close the gap in the $114,000 range.
Despite these bearish signals, some analysts remain optimistic about Bitcoin's long-term prospects. They point to strong inflows into spot U.S. Bitcoin exchange-traded funds (ETFs) and growing institutional adoption as factors that could drive the price higher. Some experts predict that Bitcoin could reach $145,167 by the end of 2025, with bullish peaks reaching as high as $250,000.
However, even the bulls acknowledge the possibility of short-term volatility. A break below the $116,000 support level could trigger a deeper correction, potentially pushing the price down towards the $111,000 region. On the other hand, if buyers can push the price above the $120,000 to $123,218 resistance zone, the uptrend could resume, with potential targets at $135,729 and $150,000.
Currently, Bitcoin is trading around $118,688, down slightly from its all-time high. The market capitalization stands at $2.37 trillion. While the long-term trend remains strong, technical indicators suggest that a short-term correction is possible.
Ultimately, the future direction of Bitcoin's price will depend on a combination of factors, including market sentiment, regulatory developments, and macroeconomic conditions. Investors are advised to remain cautious and conduct their own research before making any trading decisions. The coming days will be crucial in determining whether Bitcoin consolidates into a sustained rally or faces a more pronounced dip towards the $115,000 level.
