Bitcoin price prediction: BTC shows no directional bias as RSI and volume flatten

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Bitcoin RSI and volume drop show indecision

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Sholanke Dele

07.08.2025

Bitcoin price prediction: BTC shows no directional bias as RSI and volume flatten — Bitcoin fails to break $115.7K

Bitcoin price continues to trade in a narrow range this week, consolidating below a key resistance level at $115,700. The price level was previously the base of a multi-week consolidation following the all-time high above $120,000. In late July, a distribution phase developed, breaking the support and extending to a low near $112,000. Since then, price has recovered modestly, but momentum has stalled as the market enters another pause.

• Bitcoin is consolidating after failing to reclaim the post-distribution range

• Daily RSI at 50 and Binance Fear & Greed Index at 54 confirm neutral sentiment

• Declining volume and leverage weaken the case for an immediate bullish breakout

The $115,700 level has now turned into resistance and is reinforced by the 20-day EMA. This zone has capped Bitcoin's upside twice this week. On the downside, the 50-day EMA near $113,000 has provided consistent support, preventing a deeper retracement and possible continuation of the earlier distribution. As of Thursday, August 7, price remains trapped between these two levels, forming a tightening range that reflects indecision.

BTC price dynamics (May - July 2025). Source: TradingView

This period of sideways movement is occurring on declining daily volume, as seen on Binance. Falling volume during consolidation typically points to reduced participation and a potential build-up before a breakout. Market sentiment is also flat. The Binance Fear and Greed Index sits at 54, while the daily RSI hovers near 50, both of which highlight a lack of clear directional conviction.

Bitcoin leverage on Binance signals limited positioning pressure

Additional data from Binance reveals a drop in leverage usage. The decline in leverage suggests that many overexposed positions have been flushed out, which normally reduces the risk of cascading liquidations and supports short-term stability. However, spot market buying has not yet picked up, as both price and leverage continue to fall simultaneously. This weakens the bullish argument for now.

From a structural perspective, the market is in a transition phase following the first distribution leg. Historically, such phases can lead to a second wave of selling if upside efforts fail. For now, Bitcoin remains rangebound, and the next significant move depends on whether price can break above the 20-day EMA or fall below the 50-day EMA.

Traders will be looking for a catalyst in the form of macroeconomic news or significant whale activity to drive volatility. Until such a trigger emerges, Bitcoin is likely to remain subdued between $113,000 and $115,700, waiting for the next directional commitment.

Bitcoin futures premium dropped below 7% showing speculative demand weakened. Bitcoin formed a lower-low lower-high pattern, confirming short-term bearish pressure

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