Aug 6, 2025
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Bitcoin Faces Potential Crash After Rebounding Into Bearish FVG Zone
The Bitcoin price rebounded after dipping to $112,000 due to profit-taking following a rise to historic levels in July 2025. However, analysts caution that this recovery may be temporary.
Bearish Fair Value Gap Impact
- Analyst Kamran Asghar indicates Bitcoin has returned to a bearish Fair Value Gap (FVG) between $114,000 and $115,500.
- This gap emerged after the price fell from $118,000, suggesting potential filling of this gap.
- The area acts as a major supply zone, requiring increased buying pressure for a successful breakthrough.
- Resistance at this level could lead to rejection and further price decline.
Potential Price Decline
- A hard rejection could see Bitcoin falling to mid-July levels between $107,500 and $109,000, representing a potential 5% drop.
- This level has major support, offering a possible rebound opportunity for bulls.
- Investors should monitor Bitcoin's reaction at this critical support level.
Currently, the Bitcoin funding rate remains positive, indicating trader confidence in a bull market despite a slight decline in August, suggesting a slowdown among bullish sentiment.