Bitcoin is still trading above the $110,000 mark, but according to data from TradingView, warning technical signals are starting to appear. The price recently pulled back from the resistance at $120,000, failing to hold even above $115,000. This decline comes amid a general weakening of the cryptocurrency market.

Bitcoin weakens under technical pressure

One of the key indicators is the development of the weekly Relative Strength Index (RSI), which has fallen below its 14-week Simple Moving Average (SMA). The same signal appeared in April 2024, followed by a Bitcoin price drop of nearly 31%. A similar situation occurred in December 2024, when the value fell by more than 30%.

In August 2025, this signal is repeating at a price of around $113,000. If history repeats itself, Bitcoin could see another drop ranging from 20% to 30%, which would indicate a potential bottom around $95,000.

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Investor behavior signals caution

The Bitcoin market is currently undergoing a typical correction after reaching a new high, which is a natural phase of every cycle. To better understand short-term trends, we can observe investor behavior through on-chain indicators. One of the key metrics is the profitability of short-term holders, which is closely linked to their confidence in the market.

Currently, according to data from Glassnode, the share of coins held by short-term investors in profit has dropped from 100% to 70%. This level is typical for the mid-stages of a bullish market and is not considered extraordinary. The deeper the correction, the more coins fall into loss, which can gradually affect investor sentiment.

The combination of technical indicators and on-chain data thus paints a picture of potential risk in the market. Although Bitcoin still holds strong support above $110,000, recent movements suggest that investors should prepare for more volatility.

For long-term investors, the current situation may be an opportunity to monitor the market and adjust appropriate risk management strategies. Short-term traders should be especially cautious when opening new positions until the situation stabilizes.

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