1 week ago
Bitcoin ETF netflows whitethorn beryllium cardinal successful gauging marketplace appetite arsenic speech order-book liquidity puts $116,000 apical of the database for bulls.
Key points:
Bitcoin bounces arsenic liquidation guardrails look supra and beneath price, making $116,000 a cardinal level to watch.
Expectations telephone for BTC terms enactment to clasp supra $110,000 should bears instrumentality control.
ETF flows should supply an penetration into marketplace temper next, says analysis.
Bitcoin (BTC) approached $116,000 aft Monday’s Wall Street unfastened arsenic bulls targeted merchantability liquidity.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingViewBTC terms stares down large liquidity walls
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD $115,732 connected Bitstamp.
A late-weekend rebound continued arsenic TradFi markets reopened, and traders were hopeful that further BTC terms gains would follow.
“After wholly filling the Daily CME Gap, Bitcoin volition present effort to exit this Gap successful an effort to reclaim the precocious levels above,” Rekt Capital told X followers, referring to the spread successful CME Group’s Bitcoin futures marketplace — a classical terms magnet.
“It each starts with a reclaim of ~$116k which is the apical of the precocious filled Daily CME Gap.”
CME Group Bitcoin futures 1-day chart. Source: Rekt Capital/XExchange order-book liquidity information from CoinGlass showed terms pinned beneath a partition of asks centered connected $115,800.
“$BTC supra $115,850 volition corroborate that the $112k country was apt the bottom,” fashionable trader BigMike7335 argued successful portion of an X station alongside a illustration showing cardinal short-term Fibonacci levels.
BTC/USD 3-day chart. Source: BigMike7335/XBids were laddered from $113,800 to $112,000, with much astir aged all-time highs adjacent $110,000.
“Likely scenario: If downside gets swept archetypal - expect a bounce adjacent $110.5K,” chap trader Cipher X summarized connected the day.
BTC liquidation heatmap (screenshot). Source: CoinGlassSpotlight connected Bitcoin ETF flows, leverage flush
Discussing whether it was “time to bargain the dip” connected Bitcoin, trading steadfast QCP Capital was optimistic.
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“BTC’s July monthly adjacent marked its highest successful history, and the caller drawdown appears much corrective than capitulatory,” it wrote successful its latest bulletin to Telegram transmission subscribers.
“Historically, specified post-rally shakeouts, peculiarly those that flush retired excess leverage, person laid the groundwork for renewed accumulation. Importantly, this comes astatine a clip erstwhile macro and structural tailwinds stay supportive.”
Bitcoin futures unfastened involvement (screenshot). Source: CoinGlassCoinGlass confirmed open interest connected Bitcoin futures deed its lowest levels since July 10 implicit the weekend.
QCP suggested that Monday’s netflows for the US spot Bitcoin exchange-traded funds (ETFs) could supply an “indication” of marketplace appetite.
As Cointelegraph reported, these came retired astatine -$812 cardinal connected Aug. 1, marking the second-largest regular outflow connected record.
“We stay cautiously optimistic. Spot levels adjacent $112k warrant vigilance, particularly amid persistent macro uncertainty,” it said.
“But signs of stabilization, specified arsenic renewed spot ETF inflows, declining implied vols and a narrowing of skew, would beryllium constructive signals that organization sentiment is recovering.”
US spot Bitcoin ETF netflows (screenshot). Source: Farside InvestorsThis nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.
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