Bitcoin (BTC) Faces Correction: Darkfost Analyst Shares His Outlook and Investment Strategy

Updated

August 6, 2025

Gambar Bitcoin (BTC) Faces Correction: Darkfost Analyst Shares His Outlook and Investment Strategy

Jakarta, Pintu News – Bitcoin recently experienced a sharp decline after losing support at the $115,000 level, sparking a wave of uncertainty in the market. Recent analysis suggests that Bitcoin (BTC) may be in an “overheated” phase, similar to what happened at the market peaks of 2021 and 2024.

Bitcoin (BTC) Stock-to-Flow Model Analysis

🔔When Bitcoin is highly overvalued

🔹 A value above 3 indicates that BTC is significantly overvalued.
It may be time to lock in profits before a deeper correction unfolds.

Similar signals in the past have had a major impact on BTC's price, for example :

– September 2021 : BTC… pic.twitter.com/ypYdmaOun6
— Darkfost (@Darkfost_Coc) August 5, 2025

According to leading analyst, Darkfost, Bitcoin’s (BTC) Stock-to-Flow (S2F) model is showing signs of significant overvaluation. When the S2F value exceeds 3, this usually indicates that Bitcoin (BTC) is entering an overheated phase. This is often followed by a large market correction. History has shown that when S2F reaches the overvaluation zone, the price of Bitcoin (BTC) tends to experience a drastic drop.

In September 2021, the price of Bitcoin (BTC) dropped from $63,500 to $30,800. Then in November 2021, there was a drop from $67,000 to $15,800. More recently, in March 2024, Bitcoin (BTC) experienced a sharp correction from $73,000 to $54,000 after entering the overheated zone. This shows a consistent pattern where Bitcoin (BTC) experiences price drops after reaching high S2F values.

Also Read: Top 3 Crypto that Grew Up to 120% in the First Week of August, Got Your Token?

Current Market Conditions and Their Impact on Bitcoin (BTC)

Bitcoin (BTC) is currently attempting to recover from its most recent drop, trading around $115,019. Despite having successfully bounced off the $112,000 support zone, Bitcoin (BTC) faces strong resistance at the $115,724 level. This level previously acted as key support during the two-week consolidation in July.

The 50-day and 100-day simple moving averages (SMAs) are now just above the current price, adding overhead resistance. The 200-day SMA around $110,677 continues to provide solid support, keeping the overall uptrend for now. However, Bitcoin (BTC) will have to reclaim the $115,724 level and consolidate above it to regain bullish momentum.

Analyst Views and Investment Strategies

Although some analysts warn about the potential for further declines as investors take profits and sentiment becomes cautious, there are also those who remain optimistic. They suggest that the current correction is a healthy pause before Bitcoin (BTC) tries again to reach previous record highs.

Investors are advised to remain vigilant and monitor the S2F chart closely as Bitcoin (BTC) navigates this critical phase. The established alert system, designed for long-term market participants, serves as a strategic tool to help investors navigate Bitcoin’s (BTC) volatile cycle. While the current correction may seem abrupt, this kind of pullback is necessary for the market to reset and build a sustainable foundation for future growth.

Conclusion

Taking into account various factors, including the Federal Reserve’s monetary policy and global macroeconomic factors, the next big move for Bitcoin (BTC) will likely depend on a combination of market sentiment, institutional demand, and broader investor risk appetite in the coming weeks. Investors should consider all these aspects when formulating their investment strategies.

Also Read: Are These 3 Altcoins Likely to Print All-Time High in August 2025?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.