Key Points:
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Bitcoin will bounce back and take a critical level to watch $116,000 as the liquidation guardrail appears above and below the price.
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You should expect BTC price support to hold over $110,000.
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ETF flows should then provide insight into the market mood, the analysis says.
Bitcoin (BTC) approached $116,000 after Wall Street opening Monday as the Bulls targeted sales liquidity.
BTC prices look at major liquidity barriers
Cointelegraph Markets Pro and TradingView data showed BTC/USD $115,732 on BitStamp.
As Tradfi Markets resumed, the weekend rebound continued, and traders were hoping for a further increase in BTC prices.
“After fully filling the daily CME gap, Bitcoin is recently trying to withdraw this gap to regain the above levels,” Rekt Capital told X followers, referring to the classic price magnet, a gap in the CME group’s Bitcoin futures market.
“It all starts with ~116K landfill, the top of the recently filled daily CME gap.”
Liquidity data from Coinglass Exchange Order Book showed prices pinned beneath the wall, centered around $115,800.
“A $BTC above $115,850 confirms that the $112K area was probably at the bottom,” popular trader BigMike7335 claimed in part of the X-Post alongside a chart showing major short-term Fibonacci levels.
The bid relied on $113,800 to $112,000, but the all-time high of more than that reached nearly $110,000.
“Maybe scenario: if the drawback is swept first – expect a bounce of nearly $110.5k.”
Spotlight on Bitcoin ETF flow and use flash
When debating whether it was “time to buy dip” with Bitcoin, QCP Capital’s deal was optimistic.
Related: Is BTC repeated to $75K? 5 things you need to know about Bitcoin this week
“BTC’s July monthly deadline is the highest in history, and recent drawdowns appear to be more corrective than capillaries,” wrote Telegram Channel Subscribers from the latest bulletin.
“Historically, post-rally shakeouts like this, especially those that wash away excess leverage, have laid the foundation for updated accumulation.
Coinglass has confirmed its open interest in Bitcoin futures has reached its lowest level since July 10th on the weekend.
QCP suggested that Monday’s Netflows in the US Spot Bitcoin Exchange Fund (ETF) could provide a “sign” of market desire.
As reported by the Cointelegraph, these were announced on Friday at -$812 million, marking the second-largest daily spill on record.
“We remain cautiously optimistic. The spot level near $112K guarantees vigilance, especially amidst sustained macro uncertainty.”
“However, signs of stabilization, such as updated spot ETF influx, implied vols reductions, and skew narrowing, are constructive signals of rejuvenation of institutional emotions.”
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
