Bitcoin (BTC) continues to face downward pressure as its price remains around $113,17 on August 21, 2025. With a market capitalization of $2.25 trillion and a 24-hour trading volume of $61.2 billion, BTC has been experiencing a consistent decline since hitting highs near $124,517 earlier this month.
The cryptocurrency has been trapped in a tight range, with a low of $112,460 and a high of $114,723 during the trading session.
Technical analysis indicates that Bitcoin has a short-term bearish expectation. The cryptocurrency has formed a double-top around the $124,517 resistance level, which triggers a bearish trend. The appearance of lower highs and lower lows reaffirms that the price is under a bearish pattern with the increase in the quantity of sell orders.
The current support ranges between $112,000 and $111,500, with the resistance level of $117,000 to $118,000. Below the current level, traders will focus on the $112,000 support area, which lies below the current support level. A drop below this level could trigger bearish momentum.
In the four-hour time frame, BTC showed a sudden dip in buying after reaching the $124,517 resistance mark, and a mini-correction showed a price range between $113,000 and $115,000. Although there are some attempts to bounce, the price action has demonstrated relatively poor bullish candles with weak momentum. A retest of the local low of 112,353 is critical, and a subsequent retest could show more downside movement. A failure to hold this level may trigger further selling pressure.
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For short-term traders, the $112,000 support is crucial. A bounce off this level will indicate a possible short-term recovery towards the $117,000-120,000 resistance zone. Nevertheless, a drop below $112,000 would open up lower support areas, especially around $111,500.
In the one-hour time frame, the price of BTC demonstrated a weak rebound after touching the low of $112,353. The coin posted lower highs, which signals pressure on the selling side. Investors wishing to sell may consider going short at around the $114,500 threshold or hope to see a stable recovery above $113,500.
Bitcoin is headed towards the mid-term support of the short and long-term moving averages, favoring the bears. The 10-period and 20-period EMAs and SMAs indicate some negative signals, and the 100-period and 200-period MAs show possible support. Nonetheless, the general bias of the market is still to the downside unless Bitcoin can break above major resistance, like the $114,500 level.
With Bitcoin becoming technically resistant at its current price and the loss of trading volume, the market mood is bearish. The RSI, Stochastic Oscillator, and other momentum models indicate that the market is not strong enough to start a significant rally.
Moreover, macro events, like speeches delivered by the Federal Reserve chair Jerome Powell at the Jackson Hole Summit, can also affect the future price dynamics of Bitcoin. Traders should trade with caution and wait until confirmation of volume before large positioning. Unless Bitcoin finds a way to recapture the recent high of $114,500, a downward trend is likely to dominate.