Bitcoin continues to face stiff resistance just shy of the $115,000 mark, as traders assess whether the current consolidation is a pause before another leg higher—or the beginning of a deeper retracement.
As of August 5, Bitcoin is hovering around $114,531, slipping 0.05% in the past 24 hours and down over 3.6% on the week. Despite the temporary bounce, the top cryptocurrency remains trapped below a critical resistance zone that analysts say must be broken to ignite a new all-time high push.
Michaël van de Poppe pointed out that BTC failed to break the $115,000 threshold, calling it the “first resistance zone” and warning that momentum must build soon to avoid fading bullish hopes. He noted that a successful retest of the area could propel BTC back toward the $120,000 range.
Meanwhile, the sentiment landscape has shifted noticeably. According to analyst Ali Martinez, the Fear & Greed Index has cooled from “Extreme Greed” in early July to “Neutral” in August.
This sharp sentiment drop often signals a shift in market psychology—from euphoria to caution—just as price volatility picks up.
Critical Support Level
On the downside, Martinez also warned of a crucial support level at $111,000.
A clean break below this zone could open the door to a much steeper correction, with the next major demand area lurking near $90,000, based on MVRV pricing bands. This would represent a dramatic shift in short-term outlook, underscoring the importance of the current price structure.
Market at a Crossroads
The current structure shows Bitcoin consolidating between a narrow $110K–$116K band, where market indecision is brewing. According to technical charts, $110K–$112K remains an attractive zone for accumulation if the price fails another breakout. However, failure to reclaim $116.8K would put bullish momentum at risk and suggest a possible shift toward lower support zones.
In sum, Bitcoin’s fate over the coming days may hinge on whether it can break above $115K or loses its $111K footing. Until then, traders remain on edge, watching both sentiment and support zones like hawks.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.