Key Takeaways:
-
The power of 3 patterns of bitcoin shows accumulation, manipulation, and a possible distribution phase that targets $ 126,000.
-
A $ 922 million extermination event led to a major reset to leveraged positions, increasing the chances of a market recovery.
-
The main levels around $ 115,300 and $ 116,800 should be in -clear, with $ 120,000 acting as a powerful price magnet.
Bitcoin (Btc) Dipped to $ 112,00 over the weekend, but despite a trembling start until August, the recent BTC correction may have laid the path for a speedy recovery.
Bitcoin’s “Power of 3” pattern aimed at $ 126,000
The short -term Bitcoin price action presents a “power of 3” market structure, consisting of accumulation, manipulation, and distribution (AMD). This setup follows the liquidity, reflecting how institutional investors work compared to reactive retail flow.
-
Accumulation: The price stabilizes between $ 119,500– $ 115,300, showing a base formation phase.
-
Manipulation: Following a sharp collapse, which drops to around $ 112,000, suggesting a shaking to trap the late long ones and force the retail capitulation.
-
Distribution: If the BTC strictly retracted $ 115,300 to both low and high hours of frames, the stage could be set for a distribution distribution towards $ 126,000, a technical target aligned with recent resistance clusters.
This pattern, if proven, signals not only short-term recovery but potentially resume the bull market and gets a sidelined or short-died businessman on the guard.
BTC absorbs Fair Value Gap, Retests Key Support
Bitcoin effectively absorbs a key high time frame fair amount of interval (FVG) between $ 115,200 and $ 112,000. This range also coincides with the past all time high from May, which now acts as a critical support zone.
The rapid liquidity of this space, followed by a price rebound, reflects the strength under the surface. A support retest of a past high of $ 112,000, combined with the absorption of a non -weight supply near $ 115,000, suggests that sellers can exhaust, increasing the chances of a bullish reversal.
$ 922 Million Events in Avoiding Bias Bias
The crypto futures market reflects a significant reset, pointing to a potential emotion transfer. Over the past few days, Bitcoin’s open interest dropped to $ 79 billion from $ 88 billion, which signed a sharp reduction in leveraged positions.
It comes next to $ 922 million in crypto position Destruction On August 1, the highest since February 2025, with over $ 240 million tied to bitcoin futures.
This type of seizure is a history of history, as it reduces excessive risk and creates a room for a new long positioning.
Meanwhile, crypto analyst AMR Taha Notes Funding rates on major platforms such as Binance, Bitmex, and deribit have become negative, an unusual emergence at strong stages of trend. Negative funds indicate that shorts pay the desire to keep the positions open, indicating that retail traders are heavy bias towards further collapse.
When paired with recent prevention, this imbalance indicates the potential contractor’s strength. Like the Skews Bearish Senual and funding funding, conditions may favor a rebound.
Binance Net Taker Volume Signal Capitulation
Data from Cryptoquant It is indicated that the combined volume of Binance’s net taker drops below -$ 1.5 billion, a level last seen on July 25. This measure measures the net flow of market orders, with a strong negative reading indicating aggressive sale -side pressure.
This sharp fall is likely to reflect the forced destruction of the last long positions, especially those who have entered during the rebound of over $ 114,000. The chart above shows concentrated losses in this zone.
Related: $ 110k Support Key While Bitcoin Bear Month enters with 5% Dip: Analyst
AMR Taha said it aligned with a familiar pattern where retail investors tend to buy tops and sell bottoms, driven more than emotion than strategy. This panic-driven seller-off can mark a local bottom, which offers more calculated traders a potential accumulation opportunity.
$ 120,000 must act as a magnet price
Bitcoin’s liquidation heatmap shows a dense cluster around $ 120,000, acting as a sequel when the upward momentum forms. Technical analyst Michaël van de poppe Says The BTC is in an important resistance zone, noting that destroying above it is “a good first step” toward a new high time.
He highlighted that $ 114,800 and $ 116,800 were basic levels to make -flip, while warning that a short retest of $ 110,000 was still possible. If these obstacles are to be -Clear, a move towards $ 120,000 and above can be materialize in the coming weeks.
Related: The repeated BTC path to $ 75K? 5 things to know in bitcoin this week
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
