Bitcoin Correction Phase Sparks Caution Ahead of Potential Rebound

The start of August has brought significant changes to the market after July's rebound. BTC on the weekly chart gave back some gains, and ETH's weekly candle turned bearish, indicating short-term traders are taking profits. However, from a broader time frame, the monthly chart is still in a bottoming rebound structure.

The current market feature is that the weekly chart is in the middle zone, with momentum weakening. Bulls have not entirely lost their advantage but lack enough strength to continue breaking higher. As a result, price action is more susceptible to news flow and market sentiment, causing repeated swings within a range.

There are still some macro pressures: market expectations of policy tightening in September remain high, geopolitical risks continue to re-emerge, and the overall macro environment weighs on risk assets.