Bitcoin Technical Analysis on August 8, 2025: Market Outlook Bitcoin, the undisputed king of cryptocurrencies, never fails to engage traders and investors with its price movements. As of August 8, 2025, its price is positioned in a critical and sensitive zone, and the market is filled with speculation. Is Bitcoin on track to soar to new peaks, or is it gearing up for another significant price correction? To clarify this ambiguous outlook and gain a better understanding of the prevailing market conditions, it is essential to meticulously examine the charts and key indicators of technical analysis. The Current Market Picture and Macroeconomic Dynamics Currently, Bitcoin is trading around $116,250, having experienced a modest decline of approximately 0.54% over the past 24 hours. This price is slightly below its all-time high of $123,141, recorded on July 14, 2025. Long-term chart analysis suggests that Bitcoin remains firmly entrenched in a strong uptrend. However, the asset is presently in a short-term consolidation phase. This period of quietness and rest could be the calm before a major storm – whether this storm is bullish or bearish is the point that requires constant monitoring. Attention to macroeconomic factors is crucial at this juncture. Interest rate hikes by the Federal Reserve and volatility in global bond markets can influence investor risk appetite. Given Bitcoin's increasing correlation with tech stocks and other risk-on assets, these factors should not be ignored. Some analysts believe that as global inflation intensifies and concerns about the devaluation of fiat currencies grow, the narrative of Bitcoin as 'Digital Gold' is strengthened, positioning it as a powerful Hedge against central bank monetary policies. Key Support and Resistance Levels and Fibonacci Analysis Support and resistance levels form the backbone of technical analysis. Bitcoin possesses a solid support zone between $112,000 and $114,000, which has held up well during recent price tests. Maintaining this range is vital for the continuation of the bullish trend. If this crucial level is breached and the price decisively closes below it, the next stop could be $107,000, which is a highly significant level both psychologically and technically (due to its proximity to the 200-day moving average). In the bullish scenario, the primary resistance lies between $120,000 and $122,000. A clear, strong break above this area, accompanied by high trading volume, could pave the way for an assault on the next target of $125,000 or even higher. Some analysts, utilizing Fibonacci Extension Levels, are considering even longer-term price targets, predicting that if the current market momentum holds, Bitcoin might climb to $130,000 or even $135,000 by the end of the year. These ambitious targets inject considerable excitement into the market, but their realization depends on the buyers' ability to maintain strength against serious resistance. Deeper Examination of Technical Indicators Indicators offer a window into market sentiment and the strength of price movement. The Relative Strength Index (RSI) on the daily chart sits around 55, indicating a neutral market – neither in the overbought nor the oversold region. This positioning allows the price room for significant movement in either direction (up or down). The 50-day Moving Average (MA50), at approximately $114,500, acts as dynamic support, and trading above it reinforces the bullish trend. Meanwhile, the 200-day Moving Average (MA200), near $108,000, could serve as a final fallback and safety zone. In the four-hour timeframe, Bitcoin has formed a Descending Triangle pattern, often seen as a potential continuation or reversal pattern, hinting at the possibility of a price Breakout. But the direction of this breakout – up or down – is the million-dollar question. For a more accurate assessment, we examine the MACD indicator. Currently, the MACD line is slightly above the signal line but is declining, which may signal a weakening in upward momentum. If the MACD registers a bearish Crossover on the daily chart, it could indicate the end of the consolidation phase and the start of a deeper correction. Furthermore, the Bollinger Bands show that the price is currently in the upper half of the bands, but they are starting to constrict, which is a classic sign that a major price move is imminent. A decisive breakout from the constricted bands often determines the direction of the subsequent trend. Elliott Wave Analysis and Long-Term Outlook A number of traders swear by the Elliott Wave Theory for predicting Bitcoin's movements. According to this approach, Bitcoin might be in the process of concluding the fourth wave of a five-wave bullish structure. If this wave count holds true, the fifth wave could propel prices towards $125,000 and potentially $130,000 or even higher. However, a decisive break below the $112,000 support could invalidate this bullish scenario, potentially triggering a deeper and prolonged correction towards the $105,000 levels or even lower. Market participants should pay close attention to the wave structure and price retracements. Risks and Capital Management Cryptocurrency markets are notorious for extreme volatility, and Bitcoin is no exception. Traders must always prioritize Risk Management – setting stop-loss orders at key levels and continuously monitoring the charts can prevent major and irreparable losses. External factors, such as unexpected economic news, sudden regulatory shifts, and geopolitical developments, can rapidly impact prices; therefore, staying informed and up-to-date on macroeconomic news and the regulatory landscape is of critical importance. The emergence and widespread adoption of spot Bitcoin Exchange-Traded Funds (ETFs), while aiding institutional capital inflow, has also increased Bitcoin's correlation with traditional markets, which is itself a new risk factor. A shock in the US stock market could quickly spill over into the cryptocurrency market. Traders must plan for both bullish and bearish scenarios. Summary and Conclusion As things stand, Bitcoin is at a defining crossroads. Consolidation and holding the price above the $112,000 support could set the stage for a strong rally towards $125,000, which could be highly probable given technical evidence, including the potential descending triangle breakout and MACD crossover. However, if that critical level breaks and the market turns bearish, a drop towards $107,000 or lower is not out of the question. Traders should remain completely vigilant, use indicators to confirm signals, and guide their decisions based on a precise trading plan. Furthermore, as the year draws to a close, attention to long-term forecasts indicating targets up to $135,000 can make the investment outlook more attractive. Is Bitcoin poised for a major leap, or does it need more time to regroup? This is the question whose answer will be determined by the movements in the coming weeks.