Bitcoin Price Update
As of Aug. 20, 2025, bitcoin is trading for between $113,524 and $113,882 per coin over the last hour, with a 24-hour intraday price range between $112,647 and $115,789. The leading cryptocurrency commands a $2.26 trillion market cap and saw $45.41 billion in trading volume over the past day, as price consolidates near a crucial support level amid technical and macro headwinds.
Bitcoin Technical Analysis
Price action on bitcoin‘s daily chart points to a clear downtrend following a sharp rejection at $124,517. This level marked the peak of a double-top pattern that has since triggered a series of lower highs and declining closes. A significant volume spike at the local high confirms distribution, while recent candles suggest hesitation at the $112,000–$113,000 support zone. This level also aligns with prior demand and a short-term bounce, making it pivotal for potential reversal attempts. Failure to hold this support could open the door for a deeper retracement toward and below the psychological $110,000 level.
BTC/USD 1-day chart via Bitstamp on Aug. 20, 2025.
Mid-term Analysis
Mid-term signals from the 4-hour bitcoin chart continue to reflect a controlled downtrend channel that began on Aug. 13. A modest bounce from $112,580 has emerged, but remains unconvincing without a breakout above the $115,500–$116,000 resistance band. Volume clusters around recent lows hint at possible capitulation, yet the absence of bullish momentum suggests caution. A sustained close above $116,000 would mark the first indication of a trend shift, while rejection from this zone could invite renewed selling pressure.
BTC/USD 4-hour chart via Bitstamp on Aug. 20, 2025.
Short-term Insights
Zooming into the 1-hour chart, bitcoin appears to be forming a potential bottom, with recent candles posting higher lows and marginally higher highs. The price remains supported around $113,000, with visible indecision reflected in declining volume. For short-term traders, range-based strategies may offer opportunities, particularly for scalping long entries near support and exiting near the $114,500–$115,000 ceiling. However, should this upper boundary reject with strong volume, short positions could reassert dominance.
BTC/USD 1-hour chart via Bitstamp on Aug. 20, 2025.
Momentum Indicators
Momentum indicators paint a mixed but slightly bearish picture. The relative strength index (RSI) sits at 43, indicating neutral conditions, while the Stochastic oscillator also reads 14, similarly neutral. The commodity channel index (CCI) at −96 and average directional index (ADX) at 19 reflect weak directional momentum. Notably, both the momentum indicator at −5,526 and the moving average convergence divergence (MACD) at −66 are flashing bearish signals, adding downside bias to the short-term outlook.
Market Context
Bitcoin’s latest pullback reflects a combination of institutional repositioning, technical breakdowns, and the current investor caution in the air. Strategy’s announcement of eased share issuance restrictions fueled fears of dilution, dragging sentiment lower as its stock slid 7.4% against the U.S. dollar. At the same time, a breach of the $114,500 support level activated algorithmic sell orders and massive liquidations, compounding downside pressure.
Further, U.S. spot bitcoin exchange-traded funds (ETFs) posted $523 million in net outflows on Aug. 19, led by Fidelity and Grayscale, reducing market liquidity ahead of macroeconomic catalysts like Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole address. Powell’s Jackson Hole speech is expected to significantly influence markets. If he signals prolonged high interest rates or a hawkish stance, equities, crypto, precious metals, and bonds may see volatility or declines. Conversely, hints of rate cuts or dovish comments could lift markets and boost investor sentiment.
Market Outlook
Bull Verdict: If bitcoin maintains support above $112,500 and breaks decisively through $116,000 with rising volume, the recent downtrend could give way to a mid-term recovery. A sustained close above this resistance would validate accumulation patterns and potentially initiate a retest of the $118,000–$120,000 zone.
Bear Verdict: Failure to hold the $112,000–$112,500 support band, particularly under growing ETF outflows and bearish momentum, may accelerate downside toward $110,000 or lower. Without a clear bullish reversal signal, bitcoin remains vulnerable to continued selling pressure and broader market risk sentiment.