Weekly Trading Analysis: A Detailed Breakdown of Market MomentumBTC 28th July – 3rd August 2025
This week’s price action delivered a heavy dose of volatility, with Bitcoin bulls attempting to regain momentum after a significant midweek selloff. Despite a strong recovery into the weekend, the broader trend remains cautious, driven by macroeconomic headlines. Specifically, new US tariff announcements triggered investor concern across risk-sensitive markets.
Hourly Analysis
Early in the week, Bitcoin remained relatively stable, moving sideways just under the 200 EMA with low conviction through both Monday and Tuesday. A false breakout to the upside led into Wednesday night before sellers took control. By Thursday, Bitcoin declined aggressively, falling from around 117500 to nearly 111000 by Saturday, marking a significant pullback.
This move coincided with negative headlines surrounding new US tariffs on key global trading partners. Market participants likely viewed this as a signal of escalating trade tension, prompting capital rotation out of risk assets such as crypto.
Price stabilized briefly at the 111000 level before forming a local base. By late Saturday and into early Sunday, buyers returned and momentum shifted. Bitcoin pushed back up to the 114000 range. It now trades above the 50 EMA on the hourly chart and is approaching the 200 EMA, which will be a crucial level to monitor in the coming sessions.
Daily Analysis
On the daily timeframe, Bitcoin rejected further downside after rebounding off prior support and the 50 EMA.
Despite the sharp drawdown, Sunday printed a strong bullish candle, suggesting a short-term reversal may be in play. This bounce helped preserve a potential higher low, keeping the broader bullish structure intact.
However, price remains below the previous range highs and is now consolidating in a lower band. Until Bitcoin can close above the 116500 to 117000 zone with strong buying volume, a cautious stance remains appropriate.
Key levels to watch:
Support: 111000 (recent swing low)
Resistance: 116500 to 117000 (prior range high and 200 EMA zone)
Summary
Bitcoin faced pressure this week, largely due to news of new US tariffs that sparked investor caution. A sharp selloff occurred, but weekend trading showed resilience as buyers returned and defended key levels.
Looking ahead, keep an eye on:
Continued macroeconomic developments
Bitcoin’s interaction with the hourly 200 EMA
A potential daily close above resistance to confirm bullish continuation
The market is currently at a crossroads. Momentum is building, but conviction remains uncertain. Traders should remain flexible and attentive to both technical signals and news-driven catalysts.
