Analysis: Bitcoin is oversold in the short term or suggests the possibility of a rebound. If it falls below the support level of $112000, it will drop to the $106000 range

According to Matrixport's latest weekly report "Matrix on Target," Bitcoin has recently entered a period of adjustment, with weakened market momentum, shrinking trading volume, and consistently low funding rates, indicating a loosening of market structure. With the seasonal disturbance in August combined with external uncertainty, short-term sentiment is significantly tending towards caution. From a technical perspective, the $112000 support level has previously played a role in the initial pullback, but its rebound is insufficient, and this support level may face another test. If it falls, market attention may shift to the $106000 range. The report further points out that the repricing of US economic growth expectations may become a key factor in the rebound of Bitcoin volatility. Currently, some sectors of the US economy are facing a substantial slowdown, with the ISM manufacturing index remaining in a contraction range and non manufacturing indicators experiencing limited expansion. Employment data has also suffered a significant downward revision in recent times. Market vs Federal Reserve; Possible interest rate cuts in September; The expectation is gradually increasing, but no clear signal has been released yet, which may lead to the continuation of the consolidation market. In addition, the report mentioned that the net asset value (NAV) of some listed companies holding large amounts of Bitcoin has shrunk, which may weaken their ability to raise funds to increase their holdings of Bitcoin through issuing new shares. In the short term, oversold technical indicators may suggest the possibility of a rebound, but the report has reservations about the sustainability of the rebound and is more inclined to believe that prices will continue to consolidate sideways. Investors need to patiently wait for clear bottom signals or a resurgence of market momentum.