Key Takeaways:
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Bitcoin skew and stablecoin options show the fear that remains contained, pointing to limited downside pressure.
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Spot BTC ETF Flow and Top Trader Positioning confirmed liquidity and elastic, the sign of potential recovery above $ 120K.
Bitcoin (Btc) fell to an 11-day low to $ 114,755 on Monday, ignoring the debate if Thursday’s High High Signing record at the end of the current Bull Run. But four unique indicators suggest that the correction is only temporary and Bitcoin can immediately recover the $ 120,000 mark.
The Bitcoin options The skew metric has risen to its highest point in four months, featuring sudden and terror. In balanced conditions, skews should move between -6% and +6%. When the demand for protection options increases, the indicator jumps above the neutral band, as the Fomo periods push it below.
History shows such events often create strong purchase opportunities. On August 5, a similar jump was followed by a $ 9,657 rally for six days. Also, when Bitcoin fell to $ 74,587 on April 9, Skew held 13%, setting the stage for a double bottom and a recovery of $ 11,474 in just four days.
Some investors are now afraid that the flows from the Bitcoin spot Funds exchanged by exchange (ETFs) can start, especially after a seven-day flow of flow that ended Friday. However the panic seemed to have not occurred. Between July 31 and August 5, the ETFs registered $ 1.45 billion in net outflows, translated into a medium 6% correction to $ 112,000.
Bitcoin ETF spots represent a $ 152 billion market, which means 1% flowing or flowing into a short span should be considered normal. Due to the lower volatility in recent months, liquidity remains sufficient to absorb great redemption in ETF. Notably, the last time Bitcoin moved more than 12% within 72 hours was April 7.
Bitcoin’s leading businessmen have not reduced their long ones, boosted the thesis of bullish
Positions from top merchants to OKX and Binance show a little reaction to the latest price collapse. The data cover data, margin and Futures groceriesoffers a greater view of how professional players are positioned.
Although leading entrepreneurs have reduced long ones between Thursday and Friday, the long ratio has since stabilized. While some may argue that entrepreneurs will be reluctant to buy a DIP at $ 115,000, it is even possible that they are waiting for a potential retest of $ 112,000 before deploying additional capital.
Stablecoin demand in China has offered an additional view. Strong retail activity usually drives Stablecoins to trade in a 2% premium against the official US dollar rate. Conversely, a discount above 0.5% often reflects fear, as entrepreneurs come out of crypto handles.
Related: The approach adds $ 51m to Bitcoin as the price hits $ 124k leading to sharp sinking
Currently, tether (USDT) Trades in a 0.8% discount in China, indicating subtle pressure to leave crypto markets. However, the figure has remained stable since Friday night, suggesting that there is no emotion.
Taken, these four metrics – the skew options, ETF flow, the leading position of the entrepreneur, and Stablecoin’s request – the biggest bitcoin pullback is a temporary disappointment and points to $ 114,755 that is likely under this correction.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
