Key control
Bitcoin proves support with oi close to extremes, marginalized stablecoin flows and feeling restarts suggesting a possible opposite configuration.
Bitcoin [BTC] It clings to the key support as the price action is cut in indecision. During the past week, he printed two lower minimums, with the bouncing attempt on August 25 he did not stay.
The result?
BTC dropped 4% in the week, labeling a minimum of eight weeks to $ 107,452. However, the open interest increased to $ 84.93 billion, indicating an extreme leverage.
That is why a liquidity sweep was almost inevitable.
According to Ambcrypto, this restart could prepare the stage for a recovery leg or pave the way for a deeper reduction. In any case, bets are high, and the patience of the market becomes thin.
The risk tone is deepened as Bitcoin’s support violated
A clean rest below $ 110K was all that was needed to turn the feeling.
Bitcoin’s Fear & Greed Index has just print a minimum of four months to 39 (fear), sliding from 50 (neutral) only one day before. The capitulation had not yet hit, but the conviction was clearly thinning.
On the other hand, the last three falls in this area had caused strong rebounds.
The most important thing, when the index reached 42, fed a rally then from BTC of $ 123K in less than three weeks.
Source: Glassnode
This time, however, there is a key divergence.
In the last three rebounds, the range of $ 107K– $ 110K was aligned with ‘greed’, signing of overheated positioning and risk of coverage. Now, the same area is being tested under ‘fear’, pointing out a restart of feeling.
In a nutshell, what was once a resistance roof is now acting as a possible support. Technically, This flip often establishes Bitcoin’s opposite rebound structures, especially if liquidity begins to group on the supply side.
Liquidity accumulation increases the risk of a breakdown of the bull trap
Stablecoin’s coin is a solid proxy for liquidity flows.
Only in the last three days, the issuers have pumped a combined supply of $ 4 billion.
However, BTC has continued to lose consecutive support levels, which shows that fresh liquidity is not cycling directly in spot offers.
Adding weight, USDT’s net exits reached $ 915 million on August 27, aligning with the 3.67% reduction in BTC in the next 48 hours. In summary, the $ 110K drop was not absorbed since the offers remained thin.
Source: Glassnode
In that case, the appetite of the risk of Bitcoin fading is inclined bassist.
Punctual offers are thin, liquidity is being on the margin and feeling is stuck in fear.
In general, there is still no clear background. The short wall from $ 2 billion to $ 115K has not yet been touched, showing that bulls are not shooting for that liquidity.
Until they do, the advantage is limited. Bitcoin remains vulnerable to a deeper reduction, and less than the feeling returns to greed, the path of less resistance remains towards the inconvenience.
