Wednesday, August 6, 2025

Bitcoin (BTC) Price Forecast for August 5

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Bitcoin Price Prediction Analysis: August 5, 2025

Current Price Overview

As of today, Bitcoin’s price is hovering around $114,400, having recently bounced back from a low of just below $112,000. This recovery, however, is tempered by persistent resistance imposed by a descending trendline that has marked every short-term rebound since mid-July. The market appears cautious, with traders closely monitoring the key $116,000 region, which could serve as the next significant battleground for bulls and bears alike.

Bitcoin Price Forecast Table: August 5, 2025

Indicator/Zone Level / Signal
Bitcoin price today $114,446
Resistance 1 $116,200
Resistance 2 $121,800
Support 1 $112,500
Support 2 $110,000
EMA Cluster (20/50/100/200, 4H) $114,576 – $116,201 (Bearish)
RSI (30-min) 48.01 (Weak)
MACD (4H) Below signal, momentum stalling
Bollinger Bands (4H) Tight, compression zone
VWAP Session Bias Rejection near $114,892
Supertrend (4H) Bearish under $116,156
OBV (1D) Flattening
Derivatives Volume -31.7%, Open Interest -0.5%
Funding Rate Neutral (Low conviction)

Current Market Sentiment

The market sentiment surrounding Bitcoin remains cautious, as indicated by the muted technical indicators. For instance, the Relative Strength Index (RSI) is showing a value of 48.01, which is considered weak, and suggests that a bullish sentiment is yet to take hold. Additionally, the Moving Average Convergence Divergence (MACD) is lagging below its signal line, indicating that momentum is currently stalling rather than accelerating.

Resistance and Support Levels

Key resistance levels are positioned at $116,200 and $121,800. The former is particularly crucial, as it aligns with the bearish sentiment shown in the EMA cluster. If Bitcoin can break above this level, it could pave the way for a retest of higher resistance levels. Conversely, should it slip below the crucial support levels of $112,500 and $110,000, it may generate further downside pressure, leading traders to reassess their positions.

Understanding Derivatives Volume and Funding Rates

In the derivatives market, there’s been a marked decrease with a reduction of 31.7% in volume and a slight drop of 0.5% in open interest. This indicates a lack of conviction among traders regarding Bitcoin’s next move. The funding rate currently stands neutral, reflecting the general uncertainty and low confidence in a prevailing market direction. Investors are advised to proceed with caution as price action continues to exhibit signs of compression and indecision.

Technical Analysis: A Closer Look

On the 4-hour chart, Bitcoin remains under significant pressure, caught beneath a descending trendline that has proved resistant for weeks. The tight Bollinger Bands signal low volatility, suggesting that a breakout is imminent, although the direction remains uncertain. If those bands widen, it could indicate an impending move, making it a critical factor for traders as they watch for potential entry or exit points.

Conclusion

As the market evolves, the struggle between bulls and bears appears to be intensifying around the key levels. With cautious positioning and mixed technical indicators, traders are encouraged to stay vigilant and responsive to changes in sentiment and price action. Whether Bitcoin can reclaim lost ground or continue its sideways trend remains an unfolding narrative that will be closely monitored in the coming days.

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