Bitcoin price prediction: BTC sentiment cools as traders cut positions during pullback

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Bitcoin down 1.1% as traders cut positions

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Sholanke Dele

19.08.2025

Bitcoin price prediction: BTC sentiment cools as traders cut positions during pullback — Bitcoin open interest declines

Bitcoin’s price retracement has extended into Tuesday, August 19, pulling further away from its all-time high of $124,500 recorded last week. The latest leg of the pullback carried prices to a 12-day low at $114,400 during the Asian session, where the retracement found temporary stability around the 78.6% Fibonacci level. By the early European session, Bitcoin was hovering near $115,000, down about 1.1% on the day.

• Bitcoin falls 1.1% today to $115,000 after touching a 12-day low in Asian trading

• Fear and Greed Index drops to 53, while open interest shows cooling sentiment

• 4-hour death cross and failed hold above $117,000 keep near-term bias tilted to bearish

The decline today began from the 61.8% Fibonacci level near $117,000, which was reinforced by the 4-hour 20 exponential moving average acting as resistance. Monday’s session was decisive, as price broke below the 61.8% retracement on a surge in trading volume that exceeded that of the prior two days. The force of that move shifted the daily Relative Strength Index into bearish territory, a stark reversal from last week when the same indicator flipped bullish once price climbed above $115,000 on its way to new highs. This back and forth highlights the significance of $115,000, now emerging as a pivotal level that sits in line with the 78.6% retracement and could determine whether Bitcoin stabilises or extends losses.

Bitcoin price dynamic (July - August 2025). Source: Tradingview

Market sentiment has cooled in tandem. The Binance fear and greed index, which was elevated at 68 last week, has dropped to a more neutral 53. Retail participants now appear caught between the psychological weight of $115,000 support and the resistance at $117,000, where the 61.8% retracement and moving average cluster. At the same time, a death cross pattern has developed on the 4-hour chart, where the 20 EMA has crossed beneath the 50 and 100 EMAs, reinforcing the near-term bearish tilt.

Bitcoin deleveraging seen as falling open interest points to profit-taking

Open interest data provides an additional layer to the picture. Bitcoin open interest has been declining alongside today’s decline, indicating traders are closing positions rather than adding fresh exposure. This behaviour often points to long liquidation or profit-taking phases instead of aggressive short building. Price declines that align with falling open interest tend to be associated with deleveraging corrections, not the onset of sustained bearish trends.

The technical structure, therefore, suggests that $115,000 is the key pivot to watch. A firm defence of this zone would lend credibility to the idea that the retracement is a corrective pause within a larger bullish cycle. A break below, however, could expose the August lows from last week and raise the risk of further downside before a new support base is confirmed.

Bitcoin rebounded to $119,350 after bouncing off a 4-day low, showing dip buyers stepped back in. The long/short ratio climbed to 1.7, implying renewed bullish positioning.

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