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Essential points:
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Bitcoin rebounds as liquidation barriers emerge above and below its value, establishing $116,000 as a crucial level to monitor.
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Anticipations suggest that BTC price support should maintain above $110,000 in the event that bears gain dominance.
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ETF inflows are expected to offer insights into the market climate next, according to analysis.
Bitcoin (BTC) neared $116,000 following Monday’s Wall Street opening as bulls aimed for selling liquidity.
BTC price faces significant liquidity barriers
Information from Cointelegraph Markets Pro and TradingView indicated BTC/USD at $115,732 on Bitstamp.
A Weekend surge persisted as traditional finance markets reopened, with traders optimistic that additional BTC price advancements would follow.
“After entirely filling the Daily CME Gap, Bitcoin will endeavor to exit this Gap to reclaim the recently established levels above,” Rekt Capital informed X followers, referencing the gap in CME Group’s Bitcoin futures market—a traditional price magnet.
“It all begins with a reclaim of ~$116k which represents the peak of the recently filled Daily CME Gap.”
Exchange order-book liquidity analytics from CoinGlass demonstrated price anchored beneath a barrier of asks focused on $115,800.
“$BTC exceeding $115,850 will confirm that the $112k zone was likely the low end,” renowned trader BigMike7335 asserted in part of an X post accompanied by a chart highlighting vital short-term Fibonacci levels.
Bids were structured from $113,800 to $112,000, with additional support near historical all-time highs around $110,000.
“Probable scenario: If downside is addressed first – anticipate a rebound around $110.5K,” fellow trader Cipher X concluded on the day.
Focus on Bitcoin ETF inflows, leverage flush
While contemplating whether it was “time to purchase the dip” on Bitcoin, trading firm QCP Capital expressed optimism.
Related: Is BTC retracing its path to $75K? 5 things to understand in Bitcoin this week
“BTC’s closure for July was historically the highest, and the recent drawdown seems more corrective than capitulatory,” the firm mentioned in its latest bulletin to Telegram channel subscribers.
“Traditionally, such post-rally shakeouts, especially those that eliminate excess leverage, have set the stage for renewed accumulation. Crucially, this occurs at a moment when macro and structural favorable conditions persist.”
CoinGlass confirmed open interest in Bitcoin futures reached its lowest levels since July 10 over the weekend.
QCP inferred that Monday’s net flows for US spot Bitcoin exchange-traded funds (ETFs) could signify “market appetite.”
As Cointelegraph indicated, these reached -$812 million on August 1, marking the second-largest daily outflow recorded.
“We maintain a cautiously optimistic outlook. Spot levels near $112k require vigilance, particularly amid ongoing macro uncertainty,” the firm stated.
“However, indicators of stabilization, such as renewed spot ETF inflows, decreasing implied volatility, and a narrowing of skew, would present constructive signals that institutional sentiment is recovering.”
This article does not constitute investment advice or recommendations. Each investment and trading decision carries risks, and readers should undertake their own research prior to making a decision.
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