Bitcoin News Today: Bitcoin's Fakeout Fears Hinge on a Crucial $112.5K Neckline Break

Bitcoin’s price recently broke below a critical multiyear support trendline, sparking concern among traders about the possibility of a "fakeout" — a deceptive price movement that could lead to further losses rather than a recovery. As of late August 28, 2025, Bitcoin (BTC) was trading around $113,208, having risen 2.43% in the past 24 hours, according to Brave New Coin. However, the recent dip to a seven-week low of $108,665 and subsequent rebound have drawn attention from analysts monitoring key technical levels.

The breakdown below a long-term support trendline has been interpreted by some traders as a sign of market fragility, particularly given the low participation in open interest and cautious sentiment indicators. On the 4-hour chart, a decisive breakout above $113K could trigger a push toward $117,500. However, a failure to hold the 20 EMA, aligned with the Fibonacci 38.2% retracement, could expose BTC to renewed downside pressure, potentially revisiting the $108,700 level [3].

Technical patterns are also shaping the short-term outlook. Josh Olszewicz highlighted an inverse head-and-shoulders formation on the one-hour chart, a classic bullish reversal signal. The “neckline” of this pattern is positioned near $112,500. A successful breakout above this level could confirm the resumption of an uptrend. Meanwhile, Merlijn The Trader noted on X that Bitcoin often dips below the 100-day moving average before launching higher, a historical pattern suggesting a potential "fakeout-and-rally" scenario [3].

Despite the conflicting signals, analysts remain divided on the immediate direction of the market. Peter Brandt warned of a potential double top formation, cautioning that Bitcoin might struggle to surpass $117,570 without a decisive breakout. This divergence highlights the uncertainty currently facing traders. At the same time, Nilesh Rohilla emphasized the importance of strong hands holding positions to help convert short-term bounces into a broader bullish trend [3].

Institutional demand for Bitcoin continues to influence market dynamics. While large investors have been selling during recent dips, retail and mid-sized traders have absorbed much of the selling pressure. This suggests a shift in market structure, where accumulation by smaller players is helping to stabilize the price. The Binance Fear & Greed Index currently stands at 45, reflecting moderate investor anxiety, which analysts consider a temporary shift in sentiment rather than a structural bearish shift [3].

Looking ahead, the $117,000–$118,000 level is widely regarded as the next key milestone. If Bitcoin can hold this level and gain enough momentum, it may rally toward $140,000 in September. The potential for such a move is supported by historical price behavior and building retail participation. However, traders are being urged to monitor technical triggers and sentiment closely, as the market remains highly volatile [3].