Bitcoin (BTC) is currently testing a crucial technical support level around $113,000, following a sharp rally in July. After surging to $117,000 last week, the world’s leading cryptocurrency is consolidating, with bulls and bears battling for control in a pivotal range.
BTC Cools Off After Explosive Q3 Start
Bitcoin began August with significant volatility, briefly touching $117,450 before retreating. Over the past 72 hours, BTC has slid nearly 3.8%, bottoming near $112,800 before stabilizing above $113K on Monday.
“This pullback appears to be a healthy retest of support after an overheated rally,” said Olivia Zhang, crypto strategist at MetaEdge Capital.
The $113K zone aligns with the 21-day EMA and the previous breakout level from mid-July — making it a critical demand area for bulls.
Indicators Suggest Consolidation, Not Breakdown
On the daily chart, RSI has cooled from overbought conditions to a neutral 56, indicating reduced momentum but no clear bearish divergence. The MACD remains in positive territory, though histogram bars show declining bullish volume.
Trading volumes are down 12% from last week’s peak, suggesting the market is in wait-and-see mode ahead of key U.S. inflation data later this week.
On-Chain Metrics: Long-Term Holders Stay Strong
Despite the short-term pullback, on-chain metrics remain robust. According to CryptoQuant, exchange outflows hit a 3-week high, indicating ongoing accumulation by long-term holders. Meanwhile, network difficulty and hash rate are holding near record levels, reinforcing confidence in Bitcoin’s fundamental strength.
Whale wallet activity also surged on Sunday, with more than $600M in net inflows into addresses holding over 10,000 BTC — a potential bullish signal.
What’s Next? Key Levels to Watch
If BTC holds above $113,000, the next resistance lies near $115,800, followed by $118,000 and the psychologically important $120K mark. A breakout above $120K would likely trigger momentum-driven buying and set sights on $128K–$130K.
However, a close below $112,500 could signal deeper downside toward $108,600, where the 50-day EMA and a major trendline converge.
Bullish Structure Intact — For Now
While Bitcoin tests short-term support, the macro trend remains bullish. Unless bears push the price decisively below $112K, BTC appears poised for a continuation higher — especially if macroeconomic conditions align and institutional inflows persist into August.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.