Bitcoin’s recent price jump, after a dip to $112,000, might be short-lived. Profit-taking after the July 2025 price surge could signal trouble ahead.
A Bearish Sign: The Fair Value Gap
Crypto analyst Kamran Asghar points to a bearish Fair Value Gap (FVG) between $114,000 and $115,500 as a major concern. This gap formed after Bitcoin’s price plummeted from $118,000. The area acts as a significant supply zone, meaning buyers will need to be strong to push the price higher. Asghar predicts a rejection at this level, leading to another price drop.
How Far Could Bitcoin Fall?
A hard rejection at the FVG could send Bitcoin down to the $107,500 – $109,000 range (mid-July levels), representing another 5% drop. However, this level also offers significant support, potentially setting the stage for a rebound.
What the Funding Rate Says
Interestingly, the Bitcoin funding rate remains positive, indicating traders still believe in a bull market. However, August saw a decrease in the funding rate, suggesting bullish momentum is slowing.
The Bottom Line
While a further drop is possible, strong support exists at lower levels. Investors should carefully monitor Bitcoin’s price action around the FVG and the potential support level to gauge the next move.
