Bitcoin News Today: Bitcoin's $116K Crossroads: A Bullish Breakout or Bearish Correction Looms

Bitcoin’s price on August 24, 2025, remains in a narrow trading range, hovering near key resistance and support levels. At approximately $115,129, Bitcoin is grappling with a critical psychological barrier at $116,200, which aligns with the 38.2% Fibonacci retracement level and a cluster of exponential moving averages. On the other hand, the immediate support is positioned at $114,500, with further downside risk pointing toward $113,000 and the strong demand zone around $111,700. Technical indicators such as the RSI and Supertrend suggest a neutral to bearish stance, while the Money Flow Index indicates balanced liquidity. On-chain data also highlights a recent outflow of $108.82 million, signaling short-term profit-taking among traders [4].

Analysts and market participants are divided on whether Bitcoin will break through the $116,200 resistance or retreat toward the $113,000 level. The 4-hour chart shows a breakout from a descending channel but has not yet confirmed a bullish reversal. The RSI on shorter timeframes remains between 42 and 45, indicating that momentum is stabilizing after a week of declines. On the daily chart, a break of structure occurred around $112,000, where demand absorbed selling pressure, but repeated change of character (CHoCH) signals near $120,000 suggest that this area is acting as a stubborn ceiling for bulls [4].

The directional movement index (DMI) further reinforces the bearish bias, with the -DI line leading the +DI and the ADX trending higher. The Supertrend indicator remains bearish below $115,800, adding pressure on the price to consolidate within a defined range. Meanwhile, the VWAP levels on the 30-minute chart show Bitcoin trading slightly below the session’s average, and volatility bands indicate sideways movement. The clustering of EMAs (20, 50, 100, and 200) near $115,800–$116,200 further reinforces the significance of this resistance cluster [4].

Short-term traders are closely monitoring the $116,200 level for a breakout that could potentially unlock upside targets at $117,700 and $121,100. However, failure to hold above $114,500 could trigger a deeper correction toward $113,000 and potentially $111,700. Given the neutral technical setup and the outflow pressure observed in recent on-chain data, the market remains range-bound with a slight bias to the downside unless a clean breakout occurs [4].

Broader market sentiment is influenced by macroeconomic factors, including the anticipation of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium. Traders are closely watching for any signals regarding the Fed’s policy outlook, which could impact risk appetite and influence Bitcoin’s trajectory. Additionally, whale activity and institutional interest are key indicators to monitor as they provide insight into accumulation patterns and potential long-term bullish sentiment [3].

In the long term, Bitcoin continues to attract attention as an institutional-grade asset, with analysts forecasting substantial growth over the next decade. Bitwise, a crypto asset manager, has projected that Bitcoin could reach $1.3 million by 2035, driven by factors such as institutional adoption, inflation-hedge demand, and the fixed supply of the cryptocurrency. However, the firm also cautions that volatility will remain a defining feature of the market, despite a trend toward lower volatility in recent cycles [1].

Source: [1] Bitcoin Price to Hit $1.3M by 2035, Says Crypto Asset Manager Bitwise (https://www.coindesk.com/markets/2025/08/22/bitcoin-price-to-hit-usd1-3m-by-2035-says-crypto-asset-manager-bitwise) [2] Bitcoin Market Cycle Theory Signals Parabolic Gains Ahead Despite Short-Term Dip (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-market-cycle-theory-signals-parabolic-gains-ahead-despite-short-term-dip) [3] Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH and XRP Could Face Volatility as Markets Eye Powell at Jackson Hole (https://www.fxstreet.com/cryptocurrencies/news/top-3-price-prediction-bitcoin-ethereum-ripple-btc-eth-and-xrp-could-face-volatility-as-markets-eye-powell-at-jackson-hole-202508220408) [4] Bitcoin (BTC) Price Prediction for August 24, 2025 (https://coinedition.com/bitcoin-btc-price-prediction-for-august-24-2025/)