Bitcoin News Today: Bitcoin's Weekly Performance to Decide Uptrend Fate

Bitcoin’s recent price movement has triggered speculation about the end of its ongoing price discovery rally, with analysts emphasizing that this week’s performance could determine the next phase of the cryptocurrency’s trend. Following a decline below a critical support level, Bitcoin has been attempting to recover, but the outcome of the current week may signal whether the bullish momentum is intact or has reached a turning point.

Over the weekend, Bitcoin dropped to a local low of $112,296 on August 3, marking the first time in three weeks that it fell outside its $114,000–$120,000 trading range. The cryptocurrency had previously surged to an all-time high of $122,838 in July but failed to sustain its recovery from the previous week, losing the crucial support area on August 1 [1].

Rekt Capital observed that Bitcoin has formed a bull flag pattern on the weekly chart, with its support level at around $117,200 now under pressure after a recent breakdown. The analyst noted that the coming week’s performance will be crucial in determining whether this support level transforms into resistance or if Bitcoin can reestablish itself within the bull flag structure [1]. Should BTC reclaim the bull flag, the current correction could be seen as a temporary deviation before a resumption of the uptrend. However, if the support turns into resistance and confirms the breakdown, it could lead to a further test of the $112,000 level as a new support.

This week’s price action will also clarify the future of Bitcoin’s second Price Discovery uptrend, which is now entering its fifth week. Historically, the second Price Discovery phase tends to slow down between weeks 5–6, with its peak often occurring during this “Danger Zone.” If Bitcoin reclaims the bull flag and challenges new highs, the uptrend will continue in line with historical patterns. However, if the weekly close remains below the pattern’s bottom and confirms further downward movement, the second Price Discovery uptrend may have already ended prematurely [1].

According to Rekt Capital, the continuation of the uptrend will depend on the length of the corrective phase following the second Price Discovery. A short correction could allow for a third Price Discovery uptrend before the bear market, while a longer correction would delay any potential rally [1]. The analyst also noted that Bitcoin still has room for a third Price Discovery uptrend if the second phase has already concluded.

Bitcoin is currently trading at $114,993 on the weekly chart, with the market in a delicate state. Analysts and traders are closely watching whether this week’s price action will confirm the breakdown or signal a potential reversal [1]. Meanwhile, some analysts predict a potential peak for Bitcoin above $300,000, though a significant correction of up to 76% could follow. Others remain cautiously optimistic, pointing to potential signs of a bullish reversal after the recent drop to $112K [2].

Bitcoin’s price edged 0.4% higher in the last 24 hours, while market sentiment on platforms like Stocktwits remains bearish. Analysts also noted that Bitcoin could soon enter another price discovery phase and potentially move back past $120K if favorable macroeconomic conditions develop [4].

Meanwhile, Bitcoin mining difficulty has reached an all-time high, signaling strong network activity and increased competition among miners. This could indicate a maturing bull market, though it remains to be seen how this will affect price dynamics in the short term [5].

Source:

[1] "Bitcoin Uptrend Over? This Week's Price Action May Hold ..." https://www.newsbtc.com/news/bitcoin/bitcoin-price-discovery-rally-over-this-week-may-hold-answer/

[2] "Analyst Says Bitcoin Price Will Peak Above $300,000, But A ..." https://www.mitrade.com/au/insights/news/live-news/article-3-1012052-20250805

[3] "The market starts the week in green. Bitcoin is trading..." https://www.binance.com/en/square/post/27862927623961

[4] "Top Altcoins Recover after Fed Warnings, Showing Market ..." https://cryptorank.io/news/feed/17efe-top-altcoins-recover-after-fed-warnings-showing-market-stability

[5] "Bitcoin Mining Hits All-Time High as Google Trends Cool..." https://medium.com/@p.noblebose/bitcoin-mining-hits-all-time-high-as-google-trends-cool-signs-of-a-mature-bull-market-0d99e85a63e3