Bitcoin’s price faced downward pressure at the beginning of August, dropping to $114,337. This decline can be attributed to multiple factors, including broader market uncertainty stirred by Trump’s tariff wars.
However, one crucial factor appears to be alleviating: the impact of investor sentiment. Bitcoin’s price action is now more influenced by market conditions than investor panic.
Bitcoin Investor Selling Cools Down
This week, Bitcoin’s supply in profit dropped below the 95% threshold, which has historically indicated a market top. For over a month, Bitcoin’s supply remained within the 95% profit zone, signaling an overly bullish market.
Typically, this creates increased selling pressure as the market saturates with optimism. With the supply in profit now down to 92.5%, that pressure is starting to ease, potentially signaling a shift toward more neutral or positive momentum.
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The net position change on exchanges recently reached a four-month high, reflecting the effects of the market top conditions. The increase in exchange balances typically signifies higher selling activity, driven by the market’s inability to sustain bullish momentum.
However, this recent selling trend seems to be losing steam. The uncertainty surrounding upcoming events, such as Trump’s tariff decisions, is likely causing hesitation in the market.
With the selling pressure declining, Bitcoin could now enter a phase of consolidation. This provides an opportunity for BTC to recover its lost ground, especially as the broader market stabilizes.
BTC Price Is Hanging On
Bitcoin’s price is currently at $114,337, facing bearish pressure. The Parabolic SAR is above the candlesticks, suggesting downward momentum. However, the 50-day exponential moving average (EMA) is still holding strong as support, indicating that broader market sentiment isn’t entirely negative. Bitcoin may continue to consolidate, finding stability above the $110,000 level.
Given the current factors, Bitcoin’s price is likely to consolidate within the $110,000 range for now. If Bitcoin can break through the $115,000 level and secure it as support, a potential rise to $117,261 is possible. However, surpassing $120,000 seems unlikely in the near future.
Should the market experience bearish pressures due to external factors like the upcoming tariff announcements, Bitcoin could face further declines. If it loses the $111,187 support, Bitcoin may fall to $109,476, with the potential for further weakness. If Bitcoin breaches $110,000, the bullish or neutral outlook could be invalidated.
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