- BTC retests 0.786 Fibonacci at ~$114K; breakout above $120K could lead to a fast rally toward $130K–$226K targets.
- Miner reserves dropped by 2,831 BTC amid a $5.4K price decline, suggesting short term selling pressure and caution.
- Despite near term volatility, historical breakout patterns and Fibonacci extensions support a bullish continuation.
Bitcoin is undergoing a key retest phase, with analysts pointing to the arrival of an important zone referred to as the “Yellow Box.” Referring to insights shared on July 21 Egrag Crypto said this zone is a potential turning point in Bitcoin’s market movement.
The asset appears to be consolidating below a significant Fibonacci level, indicating the possibility of a fast upward move. The upcoming leg, described as “fast and furious,” is anticipated to catch the majority of traders off guard.
Notably, the use of the phrase “False Evidence Appearing Real” suggests that prevailing fear may not reflect the asset’s actual potential.
Crucial Breakout and Retracement Zones
The current retest coincides with Bitcoin interacting with several Fibonacci indicators. Price is now testing the 0.786 Fibonacci level near $114,659. This level is below the 1.0 extension of $144,595 and the 1.272 extension at $194,180.
The final upward projection is around $226,492. These extensions serve as potential highs in the event of a continued bullish breakout. However, the bear market retracement zones remain relevant.
The 0.5 Fibonacci level at $32,955 is a possible correction level, an 80.84% decline from the final projection. Other notable retracement levels include $39,331 and $44,608. These benchmarks define the risk boundaries if momentum reverses sharply after an extended rally.
Momentum Builds Despite Recent Miner Selling Activity
While bullish patterns are forming, miner behavior reveals a short term cautionary signal. Data from analyst Ali shows that Bitcoin miner reserves dropped from 1,809,818 BTC on July 16 to 1,806,987 BTC by August 1.
This 2,831 BTC decrease corresponds with a $5,405 price drop, a 4.5% decline in the same period. The reserve reduction indicates that miners have been offloading coins, likely to cover operational costs.
This selling pressure aligns with a weakening bullish trend in the near term. The market has reacted to these moves with increased downside volatility, testing the strength of support below $113,000.
Bullish Targets Hold if Price Clears Resistance Levels
Despite recent corrections, the overall trend is skewed toward continuation. Previous breakout phases, including a notable 135.99% move from one wedge formation, support the bullish structure.
If Bitcoin can hold above $120,000, targets of $130,000, $176,000, and $226,134 remain on track. Overall, Bitcoin’s current phase presents a key inflection point. Fibonacci targets, miner actions, and breakout history all contribute to a complex but structured outlook.
