key takeaways:
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Bitcoin options show slant and stabelcoin activity that fear remains inherent, indicating limited pressure.
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Spot BTC ETF flows and top traders confirm liquidity and flexibility, indicating recovery capacity above $ 120K.
Bitcoin (BTC) fell at a 11-day low of $ 114,755 on Monday, ignited whether last Thursday’s record high had indicated the end of the current bull run. Nevertheless, four separate -novel indicators suggest that the improvement is only temporary and bitcoin may soon recover a mark of $ 120,000.
Bitcoin option slanting metric climbed to its highest point in four months, suddenly and highly exposed to fear. Under balanced conditions, it should run between diagonal -6% and +6%. When the demand for protective put options increases, the indicator jumps above the neutral band, while the duration of the FOMO pushes down.
History shows that such events often create opportunities to buy strong. On August 5, a similar oblique jump took place $ 9,657 rally within six days. Similarly, when Bitcoin fell to $ 74,587 on 9 April, Tirach touched 13%, set the platform for a double bottom and recovered $ 11,474 in just four days.
Some investors now fear that the spot bitcoin exchange-traded funds (ETFs) may begin outflow, especially after the seven-day flow streak on Friday. Still nervousness seems wrong. Between July 31 and August 5, ETFS registered $ 1.45 billion in pure outflows, which translated only a slight 6% improvement into $ 112,000.
Spot bitcoin ETFs represent a market of $ 152 billion, which means that 1% flow or outflow on a short period should be considered normal. Given the low instability in recent months, liquidity remains strong enough to absorb large ETF redemption. In particular, the last time bitcoin exceeded 12% within 72 hours.
Bitcoin’s top traders did not reduce their long, faster the thesis
The posts of top traders in OKX and Binance show very little response to the latest price drop. These data cover spots, margin and futures markets, offer a broad view of how professional players are deployed.
Although top traders reduced the longs between Thursday and Friday, the short ratio has stabilized for a long time. Although some people may argue that these traders hesitate to buy a dip in $ 115,000, it is equally possible that they are waiting for a potential reality of $ 112,000 before deploying additional capital.
StableCoin demands more perspectives in China. Strong retail-driven activity usually pushes stablecoins to trade at 2% premium against an official US dollar. Conversely, above 0.5% discount reflects fear, as traders come out of crypto holdings.
Connected: The strategy adds $ 51m to bitcoin because the price is a $ 124k hit ahead of a sharp dip.
Currently, the USDT trades at a discount of 0.8% in China, indicating mild pressure to leave the crypto markets. Nevertheless, this figure has been stable since Friday evening, no one suggests a deteriorating spirit.
Together, these four metrics -option scavees, ETF flows, top trader positioning, and stabelcoin demand – the pullback of the SugStest Bitcoin was a temporary blow and the possibility of this improvement indicated to the lower $ 114,755.
This article is for general information purposes and is not intention and should not be taken as legal or investment advice. The ideas, ideas and opinions expressed here are alone of the author and not necessarily reflected or represented the ideas and ideas of the components.
