4 key price signals to monitor for Bitcoin this week

Cryptocurrency market experiences turbulence as Bitcoin drops below $115,000. Whales and major investors view this dip as an accumulation opportunity. What are the key reversal signals to monitor?

Written by Simon Dumoulin

Translated on August 21, 2025 at 10:00 by Simon Dumoulin

Cryptocurrency known as Bitcoin for trading.

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Bitcoin price analysis and key indicators

The price of Bitcoin has dropped to $113,844, recording a 1.57% decrease in 24 hours. The majority of cryptocurrency exchanges are currently trading in BTC pairs. Technical analysis shows that Bitcoin has broken below an ascending wedge pattern and is trading below the 50-day exponential moving average (EMA), confirming a bearish structure.

According to analyst Axel Adler, Bitcoin is currently undergoing a mild correction, with only an 8% decrease from its peak at $124,000. Key indicators, such as the 111-day SMA, the 200-day SMA, and the short-term realized price, target potential bounce zones at $109.6k, $100.4k, and $106.8k respectively. At the time of writing, Bitcoin was sitting in an optimal zone of interest for buyers. Historically, the cryptocurrency has bounced back after liquidity moves before reaching new all-time highs.

Lower timeframe: #Bitcoin continues to be trending downwards.

That's not bad, that's giving the markets opportunities.

If the markets sweep the low at $112K –>, that would be a big trigger for entry points on the long side. pic.twitter.com/RKMAf3JJR5
— Michaël van de Poppe (@CryptoMichNL) August 20, 2025

The 4 triggers for a reversal

To confirm a bullish reversal, Bitcoin must meet four key conditions:

The buyer/seller ratio on order books must remain positive.
The liquidation spikes must exceed 150, signaling increased volatility.
The percentage of retail long accounts must completely reverse.
The price must recover and maintain above the 50-day exponential moving average (EMA).

During this correction, whales and institutions have shown interest. On-chain trackers reported a whale purchase of 200 BTC (approximately $23 million), reinforcing confidence in buying the dip. Adam Back, a major Bitcoin figure, emphasized that price drops serve to transfer Bitcoin from weak hands to stronger hands.

Additionally, First Buyers were holding nearly 5 million BTC, indicating an aggressive accumulation strategy by large investors. These signals suggest early signs of a reversal, but confirmation will be essential to avoid a bull trap.

BTC First buyers chart — Source: Glassnode

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Simon Dumoulin

Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.

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