### Current Market Snapshot
Bitcoin (BTC) has recently stabilized above $113,000, following a notable pullback from its July highs of approximately $123,800. This recent price action highlights BTC’s resilience, as it is hovering just above critical support levels, including a significant trendline and the Supertrend indicator near $111,950. This area serves as a crucial pivot point, allowing bulls to maintain control of the mid-channel zone. If trading volume supports a recovery, a rebound could be on the horizon.
### Technical Analysis: Daily Chart Overview
Taking a closer look at the daily chart, Bitcoin has re-entered a rising channel that began in late April. The recent peak at around $123,800 can be identified as a local top, and BTC’s current price has corrected to retest the channel’s median around the $113,000 mark. This price level is particularly noteworthy as it aligns with the 4-hour Fibonacci 0.786 extension and the Supertrend flip at $111,957, providing immediate structural support for the asset.
### Market Sentiment and Price Action
The broader crypto market sentiment remains bullish, with Bitcoin trading well above the bull market support band, currently established between $101,434 and $104,423. This support zone has proven to be resilient, providing macro-level confirmation for long-term buyers. Impressively, Bitcoin has not closed below the Supertrend support since May, indicating a strong underlying bullish trend.
However, the recent pullback in Bitcoin’s price can be attributed to localized weakness in spot flows, alongside a rejection at the Fibonacci R3 level of $116,457 on the 4-hour chart. BTC struggled to maintain momentum above $115,700, where a clustering of the 20/50/100 exponential moving averages (EMAs) created a congestion zone. This market action indicates a potential loss of upward momentum leading to further caution among traders.
### Spot Exchange Flows and Market Dynamics
On August 6, spot exchange netflows revealed an outflow of over $68 million, reflective of mild capital rotation or profit-taking as investors reacted to recent highs. Bitcoin’s market dominance stands strong at 60.64%, but the deceleration in its growth rate suggests a possible range-bound consolidation unless revitalized bullish momentum returns to the market.
### Understanding Smart Money Concepts
According to the Smart Money Concepts chart on the daily timeframe, a fresh Change of Character (CHoCH) is forming just below the $114,200 zone. This weak break signals that sellers might be attempting to establish short-term momentum, but key liquidity remains around the $112,800 mark. Buyers have not yet relinquished critical market structure, maintaining a cautious optimism for future price action.
### Short-Term Trends: Evaluating Resistance Levels
Analyzing the 4-hour chart, Bitcoin is currently hovering just below the 20 EMA at $114,244, sandwiched between the 50 and 200 EMAs. These major EMAs cluster between $114,200 and $115,800, establishing a formidable resistance wall. Without a decisive breakout from this range, any upside moves are likely to be limited, creating a challenging environment for bulls.
The narrowing of the Bollinger Bands on the 4-hour chart suggests a volatility squeeze that may soon break out, but this potential expansion relies heavily on a strong upward movement. The current recovery attempts remain vulnerable, particularly if BTC fails to close above the 100 EMA at $115,777.
### Short-Term Outlook: Bullish Scenarios
In terms of the short-term outlook, as long as Bitcoin remains above the $112,800 level, a potential rebound remains plausible. A bounce from the rising channel and Fibonacci S3 support at $112,165 could facilitate a retest of the $115,200 level. Should BTC break through this resistance, it might aim for the stronger zones near $116,400, with further upside potential toward $118,300.
### Risk Factors and Downside Potential
Conversely, failure to hold the $112,800 support or a breakout below $111,950 would expose Bitcoin to deeper declines, potentially targeting $110,000 and even $107,300, where prior demand zones and Fibonacci levels converge. Spot volume remains flat, and short-term indicators are yet to signal a decisive bullish tone. Traders are thus advised to wait for confirmation above the clustered 20/50 EMA levels before committing to aggressive positions.
### Additional Resources
For those interested in deeper insights and further analysis, the source of this detailed market exploration can be found in the original article covering Bitcoin’s price prediction and market dynamics [here](https://coinedition.com/bitcoin-btc-price-prediction-for-august-7-2025/).
