Bitcoin’s Bearish Signals: Analyzing the Potential Downturn Amid Technical Warnings

Bitcoin's price has shown signs of vulnerability, declining over 6% since May 23, 2025, and now testing the critical $104,000 support level. Technical indicators, including a 'Three Pushes to a High' pattern on Bollinger Bands, suggest a potential exhaustion of bullish momentum. This pattern, historically a precursor to bearish reversals, has raised concerns among traders. Additionally, the market structure appears fragile, with three lower highs forming since Bitcoin's peak at $112,000. The collapse of implied volatility to an 11-month low further underscores the uncertainty in the market. As of August 12, 2025, the cryptocurrency community is closely monitoring these developments, which could signal a broader shift in market sentiment. This summary delves into the key factors influencing Bitcoin's current trajectory and what traders might expect in the coming weeks.

Bitcoin Price Faces Potential Downturn as Technical Patterns Signal Bearish Shift

Bitcoin's price has declined over 6% since May 23, now hovering just above the $104,000 support level. The daily chart reveals a concerning 'Three Pushes to a High' pattern on Bollinger Bands, typically signaling the exhaustion of bullish momentum. Market structure appears fragile, with three lower highs forming since the $112,000 peak.

Implied volatility has collapsed to an 11-month low, while CME derivatives activity shows institutional traders retreating from positions. The $102,900 level now serves as a critical inflection point—a breach could confirm bearish momentum across higher timeframes.

California Passes Bill Allowing Seizure of Dormant Crypto Assets

California's State Assembly has approved AB-1052, a controversial bill that classifies inactive cryptocurrency wallets as unclaimed property. The legislation targets Bitcoin and other digital assets left dormant for over three years on exchange-hosted wallets, granting the state authority to seize them.

Private cold storage wallets remain exempt from the new rules. Seized assets will be held in their original crypto form by a state custodian, with no provision for conversion to fiat currency. Owners can reclaim their property by verifying identity and proving ownership through documentation.

The bill now moves to the State Senate for potential amendments before becoming law. This development marks one of the most aggressive state-level interventions in cryptocurrency regulation to date, raising questions about property rights in the digital asset space.

White House Crypto Chief Bo Hines Met With El Salvador’s Bukele to Discuss Bitcoin Collaboration

El Salvador and the United States are deepening their cryptocurrency partnership following a high-level meeting between Bo Hines, executive director of the WHITE House’s Presidential Council of Advisers for Digital Assets, and Salvadoran President Nayib Bukele. The discussions centered on potential collaboration in bitcoin, stablecoins, and digital assets, signaling a strategic alignment between the two nations.

Stacy Herbert, director of El Salvador’s bitcoin Office, hinted at significant developments emerging from the talks, though specifics remain undisclosed. The dialogue underscores El Salvador’s pioneering role in bitcoin adoption and the U.S.’s growing institutional engagement with digital assets.

The bilateral relationship has strengthened since President Trump’s administration, with recent agreements extending beyond crypto to include security and immigration. El Salvador’s National Commission of Digital Assets (CNAD) has already engaged with U.S. counterparts, suggesting a multi-layered approach to crypto policy coordination.

Cryptocurrencies Face Unexpected Downturn Amid Tariff Uncertainties

Bitcoin's price hovers at $104,800 as market participants await a critical phone call between former President TRUMP and China's Xi Jinping. The discussion, which may clarify tariff policies, stands as today's pivotal market-moving event. A postponement to tomorrow remains possible.

The European Central Bank's impending interest rate decision adds another LAYER of volatility. Analyst Roman Trading, known for conservative forecasts, notes striking parallels to 2021's market conditions: dwindling trading volumes alongside price increases, triple bear divergence on RSI indicators, and overbought positions. "The bull run has concluded," he asserts, pointing to diminishing market responsiveness to news catalysts.