Bitcoin has seen a comeback, partly due to better market feelings, a weaker US dollar, and new developments in the United States concerning cryptocurrencies. The price of Bitcoin went up by about 4.5% from its recent low point around $112,000 on August 2. This happened after a change in how people viewed the Federal Reserve's plans for interest rates, which also caused the US dollar's rise to slow down.

A significant event for Bitcoin and other cryptocurrencies was when President Donald Trump signed an order allowing people with 401(k) retirement accounts to invest in alternative assets, including digital ones. This order asks the Secretary of Labor to look again at the rules about how people managing these retirement plans handle investments in things like private equity, real estate, and digital assets. The goal is to make the country a leader in the cryptocurrency world, with the order stating that these alternative assets can offer good returns and help spread out investments.

Following this news, cryptocurrencies generally saw a boost. Bitcoin's price moved above $117,000, which was a 2% increase for the day, and Ethereum's price rose by 5%. This change could lead to more money from larger institutions flowing into crypto, as investors who haven't bought digital assets before might now consider adding them to their retirement plans.

Looking at how money has moved in exchange-traded funds (ETFs), there was a trend of money coming in for five days before a Federal Reserve meeting. However, after the Fed Chair made comments suggesting interest rates might stay higher for longer, money started flowing out for four days. Even though recent job data was not strong, the outflows continued into the start of the week before stopping. In the last two days, there have been modest inflows of about $91.5 million and $74 million, suggesting a possible shift in market sentiment.

From a technical viewpoint, Bitcoin has tested a support level around $112,000 and has since moved higher. It has been forming a pattern that looks like a bull flag since reaching new highs on July 14, 2025. The price has now reached the top of this pattern, moving above key moving averages. There was even a "death cross" pattern noted on August 5, which Bitcoin seemed to overcome as it continued to rise, indicating strong upward momentum.

Currently, Bitcoin appears to be on the verge of breaking out of this bull flag pattern, which could lead to a price increase towards $125,000. The recent higher high suggests a possible pullback to around $114,555 before continuing its upward trend and breaking out of the pattern. If the price falls below $114,555 on a four-hour chart, it could invalidate this setup and lead to a retest of the lower part of the bull flag. Immediate resistance levels are at $120,000, $120,900, and the all-time high of $123,236. Support levels are seen at $114,555, $112,916, and $112,000. It's important to remember that investing in markets like cryptocurrencies involves risk, and it's wise to do thorough research and understand your personal financial situation before making any investment decisions.

Original article (bitcoin) (ethereum) (etfs)

Actionable Information: The article provides no direct actionable steps for a normal person to take. It discusses market trends and potential price movements, but does not offer guidance on how to act on this information.

Educational Depth: The article offers some educational depth by explaining the reasons behind Bitcoin's price movements, such as market sentiment, the US dollar's performance, and Federal Reserve policies. It also touches on the technical analysis of Bitcoin's price patterns. However, it does not delve deeply into the "how" or "why" of these complex systems, nor does it explain the creation or meaning of the technical patterns in a way that would significantly enhance a layperson's understanding.

Personal Relevance: The topic of cryptocurrency investments is relevant to personal finance and future planning for individuals interested in alternative assets. The mention of President Trump's order regarding 401(k) investments in digital assets directly impacts the potential for individuals to incorporate crypto into their retirement planning, making it personally relevant.

Public Service Function: The article does not serve a public service function. It reports on market news and potential investment opportunities without offering official warnings, safety advice, or emergency contacts. It does not provide any public information with new context or meaning.

Practicality of Advice: The article offers no direct advice, tips, or steps for a normal person to follow. The technical analysis and price predictions are presented as observations rather than actionable strategies.

Long-Term Impact: The article touches on potential long-term impacts by discussing how institutional money might flow into crypto and how individuals might consider digital assets for retirement. However, it focuses on short-term market movements and trends, which may not have lasting value for an average reader.

Emotional or Psychological Impact: The article could evoke a sense of hope or interest in cryptocurrency investments due to the positive price movements and potential for growth. However, it does not offer any strategies for managing emotions related to investing or dealing with the inherent risks.

Clickbait or Ad-Driven Words: The article does not appear to use overtly clickbait or ad-driven language. It presents information in a relatively neutral tone, although the focus on price increases and potential breakouts could be seen as encouraging investment.

Missed Chances to Teach or Guide: The article missed opportunities to provide more practical guidance. For example, it could have explained how individuals could research and invest in cryptocurrencies, or provided resources for understanding the risks involved. It could have also offered more detailed explanations of the technical terms used, such as "bull flag" or "death cross," and how a layperson might interpret them. A normal person could find better information by researching reputable cryptocurrency news sites, consulting financial advisors, or exploring educational resources on blockchain technology and investing.

The text uses strong, positive words to describe Bitcoin's performance and future. Phrases like "comeback," "better market feelings," and "strong upward momentum" create a favorable impression. This language aims to make readers feel optimistic about Bitcoin.

The text presents a potential future outcome as a certainty. It states, "Currently, Bitcoin appears to be on the verge of breaking out of this bull flag pattern, which could lead to a price increase towards $125,000." This phrasing suggests a guaranteed rise, which is speculative in nature.

The text highlights a presidential action as a positive development for cryptocurrencies. It mentions President Trump's order and its goal to "make the country a leader in the cryptocurrency world." This framing suggests a nationalistic benefit tied to cryptocurrency adoption.

The text uses technical jargon that might be unfamiliar to many readers. Terms like "bull flag," "death cross," and "moving averages" are used without much explanation. This can make the analysis seem more authoritative, even if the reader doesn't fully grasp the technical details.

The text mentions a specific date for a technical pattern, "July 14, 2025." This date is in the future, and the pattern is described as forming "since reaching new highs on July 14, 2025." This creates a confusing timeline, as the pattern is described as already forming based on a future event.

The text conveys a sense of optimism and excitement regarding Bitcoin's recent performance and future potential. This is evident in phrases like "comeback," "better market feelings," and "strong upward momentum." The mention of Bitcoin's price increase, the positive impact of President Trump's executive order, and the technical analysis pointing towards a potential breakout all contribute to this feeling of optimism. The purpose of this emotion is to build confidence in the cryptocurrency market and encourage readers to view it favorably. It guides the reader's reaction by inspiring action, suggesting that this is a favorable time to consider investing in digital assets. The writer uses words like "boost" and "break out" to create a more energetic and positive tone, moving away from neutral reporting.

Furthermore, there is an underlying tone of anticipation and opportunity. The executive order is presented as a "significant event" with the "goal is to make the country a leader in the cryptocurrency world," highlighting a forward-looking and ambitious sentiment. The potential for "more money from larger institutions flowing into crypto" and investors considering digital assets for their retirement plans also fuels this sense of opportunity. This emotion aims to persuade readers by presenting a compelling vision of growth and innovation, suggesting that valuable opportunities are emerging. The writer employs phrases like "on the verge of breaking out" and the specific price targets like "$125,000" to amplify this feeling of impending positive change.

The text also touches upon a sense of caution and prudence, particularly in the concluding sentences. While detailing the positive market movements and technical indicators, the writer explicitly states that "investing in markets like cryptocurrencies involves risk" and advises readers to "do thorough research and understand your personal financial situation." This emotion serves to temper the overall optimism and build trust by acknowledging the inherent uncertainties of the market. It guides the reader's reaction by encouraging a balanced approach, preventing impulsive decisions and promoting responsible investing. The writer uses direct advice and a disclaimer to convey this caution, ensuring that the reader understands the importance of personal due diligence. The use of specific support and resistance levels in the technical analysis also implicitly conveys a sense of careful observation and risk management.