As of August 20, 2025, BTC/USD (Bitcoin/US Dollar) remains in a clear downtrend despite undergoing short-term rebound phases. In particular, the $112,850 zone has repeatedly acted as a crucial support line, with the market consolidating around this level amid ongoing buying and selling pressure.
This article leverages technical analysis to forecast future price movements using multiple indicators such as chart patterns, moving averages, MACD, ADX, and volume. Market psychology and trading strategies are also discussed to provide deeper insights for readers.
The chart shows a sustained downtrend, with prices starting to decline significantly in the latter half of August 19. Although temporary rebounds are observed around the $112,850 zone, they are limited in scope, indicating weak upward momentum.
Frequent long upper wicks on candlesticks suggest strong selling pressure, implying that "sell the rally" sentiment remains dominant.
The chart displays three key moving averages: 20EMA (short-term), 50SMA (mid-term), and 200SMA (long-term). Based on their slopes and positioning relative to price, the following can be observed:
This structure forms a typical bearish perfect order, signaling seller dominance across all time frames—short, medium, and long term.
The MACD line remains below the signal line, and the histogram is still in negative territory. This confirms persistent bearish momentum. Even if prices experience a short-term bounce, the lack of strong buying power suggests limited upside potential.
While a minor recovery attempt is visible in MACD, the overall bias remains bearish. Should the MACD line cross above the signal line in the near future, a short-term trend reversal may be considered—but such signals should always be confirmed with volume and other indicators.
The ADX is hovering around 40, indicating a strong existing trend in the market. Additionally, the -DI (downward pressure) line is significantly above the +DI (upward pressure), clearly confirming the prevailing downtrend.
As long as ADX remains elevated, the trend's continuation is likely.
Trading volume tends to increase during price declines, while it stagnates during rebounds. This pattern is typical of a market driven by selling pressure.
The volume behavior suggests that energy is accumulating to potentially break the $112,850 support level. Traders should be on alert as this level is tested repeatedly.
| Level | Price | Rationale |
|---|---|---|
| Immediate Resistance | $113,500 | Recent short-term high, aligns with the 20EMA |
| Mid-Term Resistance | $114,000 | Near 50SMA, forms a sell zone ceiling |
| Immediate Support | $112,850 | Previously respected support level, important on closing basis |
| Next Downside Target | $112,000 | Psychological round number, potential major support |
In the current market, a “sell the rally” strategy remains the primary scenario. Price rejections around $113,500–$114,000 offer potential entry points for short positions. On the flip side, a clean break below $112,850 may trigger stop-losses and accelerate a move toward $112,000.
For contrarian traders, buying dips around $112,000 may be considered, but due to elevated ADX and a weak MACD, tight risk management is essential.
BTC/USD is currently entrenched in a strong downtrend, with multiple technical indicators aligning to confirm bearish momentum. Specifically, weak momentum, MACD divergence, and elevated ADX levels reinforce the downward bias.
Whether the $112,850 support holds or breaks will determine the next leg of movement—either another test of $114,000 or a slide toward $112,000. Regardless, traders must identify directional bias and define entry points accordingly. Avoiding emotional trading and preparing a strategy in advance are crucial for responding calmly to market developments.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please conduct your own research before making trading decisions.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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