Bitcoin’s Relative Strength Index (RSI) has entered a bearish trend since March 2024, reflecting a broader shift in market sentiment and momentum. As of the latest data, the RSI for Bitcoin is in the neutral zone, standing at 52.33, indicating that the market is neither overbought nor oversold but remains in a consolidation phase [1]. This neutral positioning suggests that Bitcoin could move in either direction based on upcoming macroeconomic and market catalysts. The RSI’s position in this range also highlights the lack of a dominant trend, with momentum signals fluctuating without a clear direction.
The bearish divergence in Bitcoin’s technical indicators is further evident in the MACD histogram, which has shown a declining bullish momentum at -60.56 [2]. The MACD line currently remains below the signal line, pointing to short-term bearish pressure that could persist in the near term. In addition, Bitcoin’s ADX is at 21, signaling the absence of a strong trend and a potential for sideways price movement. These indicators together suggest that while the long-term bullish structure remains intact—evidenced by Bitcoin’s position above key moving averages—short-term traders should remain cautious of potential pullbacks and volatility.
Bitcoin’s current price action is also influenced by macroeconomic concerns, particularly inflation data that has triggered renewed uncertainty in markets. The recent higher-than-expected U.S. Producer Price Index (PPI) for July has raised concerns about the Federal Reserve’s ability to implement rate cuts as anticipated [5]. This development has led to a 4% drop from Bitcoin’s all-time high of $124,514, with the price stabilizing around $117,900. The correlation between Bitcoin and traditional risk assets in times of macroeconomic stress further emphasizes the need for traders to closely monitor upcoming economic data that could influence the direction of the market [2].
Analysts have identified key support and resistance levels that will likely dictate Bitcoin’s next major move. Immediate support is positioned at $117,000, with stronger backing at $111,920. On the upside, resistance is formidable at $124,474, and a break above this level could trigger renewed buying interest and potentially push prices toward the $130,000 psychological milestone. The current trading range between $117,144 and $118,231 is a critical battleground for both bullish and bearish forces, with any decisive break in either direction likely to signal a shift in market sentiment [5].
Bitcoin whale activity and on-chain data also provide insights into the market’s near-term outlook. Accumulation patterns around the $118,000–$119,000 range suggest that large holders are positioning for a potential rebound, particularly ahead of the Bitcoin halving in 2025. The halving event, historically a bullish catalyst, is expected to reduce miner rewards and tighten supply, potentially enhancing Bitcoin’s price action over the long term [5]. In addition, institutional interest in the cryptocurrency market remains strong, with recent developments such as Bullish’s successful NYSE debut further reinforcing the underlying support for Bitcoin’s price.
Looking ahead, the coming weeks will be pivotal in determining whether Bitcoin’s consolidation phase leads to a breakout or a deeper correction. The RSI’s current neutral position allows for flexibility, but a drop below 40 could trigger oversold conditions and renewed buying interest, while a push above 60 could confirm the resumption of bullish momentum. As the market continues to process conflicting signals from macroeconomic data and technical indicators, traders and investors must remain vigilant and adapt their strategies accordingly [1]. The next 24–48 hours are expected to provide critical directional clues as Bitcoin tests key support and resistance levels in the $117,000–$119,000 range.
Source:
[1] Crypto Euphoria Fades Into Brutal Correction (https://www.cointribune.com/en/crypto-euphoria-fades-into-brutal-correction/)
[2] Bitcoin Holds Above $117K Despite Inflation Fears as BTC Tests (https://blockchain.news/news/20250817-bitcoin-holds-above-117k-despite-inflation-fears-as-btc-tests)
[3] Relative Strength Index (RSI) Indicator Explained for Beginners (https://tradeforex.ai/relative-strength-index-rsi-indicator-explained-for-beginners/)
[4] Analyst says Bitcoin’s RSI Forming Rare Bullish ‘W’ Setup (https://cryptodnes.bg/en/analizi/analyst-says-bitcoins-rsi-forming-rare-bullish-w-setup/)
[5] Bitcoin Price Today: BTC Holds $119K Support Despite … (https://bravenewcoin.com/insights/bitcoin-price-today-btc-holds-119k-support-despite-u-s-policy-uncertainty-whats-next)
