Digital assets have always been volatile, a given due to their youth compared to other asset classes:
After stellar July and August trading, which took Bitcoin to a retest of its all-time highs and, more surprisingly, Ethereum from $2,500 on July 1st to $4,790 in less than a month and a half of trading, the strong upmoves are getting met with sharp reversals.
Bitcoin has been downtrending since attaining a new record High of $124,200 on August 14th.
Let’s examine a multi-timeframe analysis of the biggest crypto to spot what's next.
Bitcoin Daily Chart
Bitcoin Daily Chart, August 22, 2025 – Source: TradingView
Bitcoin is regaining its previous all-time high region for the second time in the month around $112,000 – A key support zone!
Retesting previous record highs is a healthy process in upward trending products, as it was seen in Equities for example in April with the Trump tariffs fear-flows.
On the other hand, bulls will want to make sure they do not breach the $110,000 to $112,000 support zone to avoid a more bearish longer-term outlook.
Before breaching the $110,000 handle, we mentioned the $100,000 landmark being the key for the general crypto market health barometer – Keep these levels in check.
Let's take a closer look.
Bitcoin 4H Chart
Bitcoin 4H Chart, August 22, 2025 – Source: TradingView
Looking closer shows a mixed picture for the current price action –
The Daily RSI momentum starts to enter the bearish territory, while the 4H RSI starts to rebound and even shows a bullish divergence.
On the other hand, 4H period Moving averages are starting to see a bearish cross (50 MA crossing the 200 from above) – Conflicting signs!
A weekly close below the $110,000 handle would give more probability for a bearish continuation.
Holding between $110,000 to $112,000 points to further consolidation, while staying above $112,000 would show the most bullish case of a longer run break-retest to the upper side, signalling further bullish continuation.
A descending wedge in also forming on the 4H Chart– A typically bullish sign, however everything will depend on sentiment post-Powell's speech.
Levels to watch for BTC trading:
Support Levels:
- $110,000 to $112,000 previous ATH support zone
- $106,000 Minor support
- $100,000 Main support at psychological level
Resistance Levels:
- $115,000 to $117,000 Pivot Zone
- Major Resistance $122,000 to $124,500
- Current all-time high $124,596
