Bitcoin News Today: Bitcoin Stabilizes Near $113,800 Amid Bull Flag and Mixed Signals

Bitcoin has entered a period of consolidation, with its price hovering between key levels and showing little directional bias. The 4-hour chart reveals that BTC has recently reentered a bull flag pattern, a formation often associated with potential upward breakouts. This development follows a sharp correction that pushed the price down to $112,000 before stabilizing near $113,800. The retracement back into the bull flag suggests that the immediate support structure at $112,000 has been reinforced, and traders are now watching whether the price can break out decisively [1].

Technical indicators are beginning to signal potential for a larger move. The Relative Strength Index (RSI) on the daily chart has shown signs of crossing key resistance levels, including a descending trendline and a moving average, which previously coincided with a 25% price surge. If BTC’s RSI can retrace and break these levels again, it could signal a continuation of the bull trend. However, caution remains necessary, as the Stochastic RSI on the weekly chart is showing bearish signals, with the indicator lines trending downward. Analysts note that a rebound near the 50.00 level on the Stochastic RSI could be critical in confirming the strength of the inverse head and shoulders pattern, which has already seen a neckline breakout and a confirmation pullback [2].

On the weekly chart, the inverse head and shoulders pattern has emerged as a key technical signal for the next stage of the bull run. The price broke through the neckline of this formation, only to return for confirmation, which is a bullish sign. However, this pattern is being called into question by the Stochastic RSI, which is currently pointing to a weakening trend. Traders are closely watching whether these conflicting signals can be reconciled, with the 50.00 level on the Stochastic RSI seen as a critical turning point [3].

Meanwhile, whale activity is adding another layer of complexity to the market narrative. Reports indicate that large holders have begun accumulating BTC following the recent pullback, suggesting they may be positioning for a potential rebound. Conversely, some analysts have speculated that large investors are quietly exiting the market, possibly in anticipation of a larger correction. This divergence in whale behavior has raised questions about the depth of the current consolidation phase and whether it is masking a broader shift in sentiment [4].

Despite these mixed signals, institutional adoption of Bitcoin continues to progress, with corporate holdings now surpassing $91 billion. This level of institutional interest is viewed by many as a long-term support factor for BTC, even as near-term volatility remains a concern. If the price can stabilize above $115,000, the market may avoid a deeper bearish correction. However, a break below this level could trigger a wave of further selling pressure and extend the current consolidation period [5].

The market is currently in a state of watchful waiting, with traders and analysts closely monitoring the unfolding technical and on-chain developments. Whether this period of relative calm leads to a bullish breakout or a deeper bearish correction remains uncertain, but the potential for a significant price movement is increasingly evident.

Source:

[1] Bitcoin (BTC) Quiet Now, But Is a Big Storm Brewing? (https://cryptodaily.co.uk/2025/08/bitcoin-btc-quiet-now-but-is-a-big-storm-brewing)

[2] Bitcoin drops to $112,000 : calm before the storm ? (https://investx.fr/en/crypto-news/bitcoin-dips-to-112000-is-a-calm-summer-ahead-for-btc/)

[3] Ethereum Whale Moves $300M—Could ETH and XRP See ... (https://en.bitcoinsistemi.com/ethereum-whale-moves-300m-could-eth-and-xrp-see-major-rally/)

[4] Bitcoin's Final Countdown? Secret Whales Are Moving (https://www.publish0x.com/crypto-winter-2025-is-it-the-end-or-a-new-opening/bitcoin-s-final-countdown-secret-whales-are-moving-is-a-mega-xpljyxr)

[5] What Crypto Whales Bought After the August Dip (https://cryptonews.com/exclusives/what-crypto-whales-bought-after-the-august-dip/)