Bitcoin News Today: Bitcoin Near $112,934 as Traders Watch Bollinger Bands for Bullish Expansion

Bitcoin's price action has drawn significant attention as the cryptocurrency traded near $112,934 on August 2, 2025, following a 2.88% decline for the day [1]. Technical analysts and traders are closely observing a potential Bollinger Band contraction pattern, similar to one observed during the 2021 price cycle, where a brief breakout was followed by a sharp price movement [1]. The current market behavior has sparked speculation that the recent drop could be a "fakeout"—a short-term bearish deviation before a more substantial bullish move takes hold.

The Bollinger Band contraction is a well-known indicator of rising volatility, often preceding a major price expansion. In 2021, a similar squeeze occurred in early November, followed by a downward breakdown and subsequent rapid recovery. This historical reference gives traders a framework to interpret the current setup [1]. On the BTC/USD daily chart, a tight squeeze in late July 2025 is marked by a drop outside the lower Bollinger Band, labeled as a potential "fakeout" [1]. Analysts suggest that a return within the bands by the weekend or early next week could signal the completion of this phase and trigger a sharp upward push, potentially breaking above $120,000 [1].

SuperBitcoinBro, a prominent technical analyst on X, has drawn comparisons between the 2021 and 2025 setups. The chart shared by the analyst highlights the similarities in structure and timing, suggesting that current market conditions may follow a similar trajectory [1]. The post, which gained over 23,000 views in 12 hours, emphasizes the potential for renewed bullish momentum following the reentry into the Bollinger Bands [1]. If this scenario unfolds, it could lead to a retesting of upper price levels and attract spot buyers and leveraged long positions.

However, the market is not without caution. While the Bollinger Band contraction is a strong technical signal, it is not a guarantee of a specific outcome. Volume behavior, macroeconomic context, and broader market sentiment also play critical roles in determining the direction of the price movement [1]. Analysts are divided, with some expecting a bullish breakout and others suggesting a potential bearish bias if the price fails to reenter the bands [1].

The current price range of $113,600–$114,700 reflects a period of consolidation after the sharp upward move in July [4]. The market is testing key support and resistance levels, with the 107,280 level seen as a critical support zone in a potential inverse cup-and-handle pattern [3]. Traders are closely watching for a decisive move in either direction, as confirmation of the fakeout could drive a significant shift in market sentiment.

At this stage, the central question for traders remains whether Bitcoin will follow through with a clean expansion or invalidate the pattern. If the fakeout is confirmed and the price returns within the Bollinger Bands, historical trends suggest a high probability of bullish momentum. Conversely, a failure to reenter the bands could indicate a breakdown rather than a buildup, leading to further selling pressure and a potential decline toward $108,000 [1].

The market appears to be in a critical phase, with traders awaiting the upcoming weekend close for a clearer signal. The behavior of daily candle closings will play a key role in determining the next move. As the cryptocurrency market continues to navigate this period of uncertainty, technical indicators and historical patterns remain essential tools for traders positioning for potential volatility.

Sources:

[1] title: Bitcoin 112K with Traders Watching Bollinger Bands for Big Expansion (https://cryptonewsland.com/bitcoin-112k-with-traders-bollinger-expansion/)

[4] title: XRP Price USD, Live XRP Price, XRP Real-Time Price (https://www.bitget.site/price/ripple)