Bitcoin News Today: Bitcoin's Broken Trendline: Fakeout or Start of a New Bear Market?

Bitcoin’s recent price movements have reignited debates about the state of the cryptocurrency market, with analysts divided on whether the ongoing decline signals a deeper bear market or a temporary setback. As of late August 2025, BitcoinBTC-- (BTC) fell below its multiyear trendline support, raising concerns among investors about a potential repeat of historical corrections. The price had dropped more than 13.75% from its peak of $124,500, breaking below a key parabolic support curve that has historically underpinned its bull runs [1]. Analysts have pointed to past market cycles—such as the 2013, 2017, and 2021 collapses—as cautionary tales when both parabolic and RSI support levels are simultaneously breached [1].

However, some crypto analysts argue that the recent breakdown may be a “fakeout,” a common pattern in Bitcoin’s history where sharp dips serve to shake out weaker investors before a strong rebound. Prominent analyst BitBull suggested that even if Bitcoin’s price temporarily dips below $100,000, it could still represent a buying opportunity for long-term holders [1]. The $80,000–$100,000 range is seen as a potential battleground between bears and bulls, with the bears aiming to push BTC lower and the bulls anticipating a retest of higher levels.

The RSI indicator remains a critical factor in determining whether Bitcoin will continue its downward trend or stabilize. Historically, when the RSI breaks below its trendline support, it has often signaled a more severe correction. If that were to happen, Bitcoin could see a move toward its 50-week exponential moving average near $80,000 by the end of 2025, mirroring prior corrections [1]. Analyst SuperBro highlighted that the Pi Cycle Top model has not yet triggered a sell signal, as the 111-day simple moving average has not crossed above the 350-day moving average x 2, which historically marks major tops in Bitcoin’s cycles [1]. This suggests that the current price action does not yet reflect a complete exhaustion of bullish momentum.

Despite the bearish indicators, the market remains cautiously optimistic. SuperBro predicts that Bitcoin could ultimately reach a new all-time high of $280,000 before completing its current cycle [1]. The analyst emphasized that as long as the RSI remains above its trendline, the case for a sustained bear market remains unproven. Meanwhile, traders are closely watching whether Bitcoin can stabilize above $114,000 to avoid a deeper correction [1].

The broader cryptocurrency market has also shown mixed signals. Shiba InuSHIB-- (SHIB) has attracted attention for its potential for a surprise rally, despite not showing significant short-term price movement. On the other hand, XRPXRP-- faces challenges as it struggles to maintain relevance among major cryptocurrencies. Meanwhile, questions linger about whether the broader crypto bull market is over or if it is merely in a correction phase.

Bitcoin’s performance remains a key barometer for the entire digital asset market. If the price fails to retest the $100,000 level and instead continues to decline, it could trigger a broader market sell-off. Conversely, a swift recovery would reinforce the narrative that the current dip is a temporary correction rather than the start of a new bear market.

Source: [1] Bitcoin Breaks Below Multiyear Support: Is it a Classic BTC Fakeout (https://cointelegraph.com/news/bitcoin-loses-multiyear-support-trendline-classic-btc-fakeout)