Key Takeaways:
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Bitcoin’s “Power of 3” pattern suggests we’re looking at accumulation, manipulation, and a possible distribution phase targeting $126,000. Sounds like a dramatic plot, right?
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A $922 million liquidation event reset the market’s bias, making it prime time for a recovery. Just when you thought things couldn’t get crazier…
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Bitcoin needs to break through key levels of $115,300 and $116,800, with $120,000 lurking like a magnetic force waiting to draw us in.
Bitcoin (BTC) took a dip to $112,000 over the weekend, and while August began with a shaky start, this might just be the correction we needed before the big comeback! Fasten your seatbelts, it’s about to get wild.
Bitcoin’s “Power of 3” Pattern Aims at $126,000
The tale of Bitcoin’s price movement is unfolding like a finely crafted novel, with its “Power of 3” market structure—Accumulation, Manipulation, and Distribution (AMD)—reflecting the same drama as a grand opera. This isn’t just a market move; it’s an institutional-level performance versus retail players who tend to react more impulsively. But let’s break it down:
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Accumulation: Price stabilizes between $119,500–$115,300. Think of this as the calm before the storm, where Bitcoin is building its base, quietly gathering strength.
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Manipulation: A sharp drop follows, bottoming around $112,000, signaling a possible shakeout. Let’s face it—many were caught in the whirlwind, forced to abandon their positions. Ouch.
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Distribution: If Bitcoin reclaims $115,300 across different timeframes, we could be heading toward a dramatic distribution phase targeting $126,000. This is no longer just a prediction; it’s a calculated move for those bold enough to take it.
If this pattern plays out, it’s not just a temporary uptick but potentially a full-blown bull market resurgence that’ll leave sideline traders scrambling to catch up. And yes, it might even catch the “short-sighted” traders completely off guard. You know who you are. 😉
BTC Absorbs Fair Value Gap, Retests Key Support
Bitcoin has gone ahead and absorbed a crucial fair value gap (FVG) between $115,200 and $112,000, a range that just so happens to align with May’s previous all-time high. Convenient, right? Now, it’s acting as a critical support zone.
The quick liquidity sweep into this gap followed by a rebound shows there’s more going on under the surface. A support retest at $112,000, combined with absorbed supply near $115,000, indicates that sellers may be exhausted. This could set the stage for a bullish reversal. Nice try, bears!
$922 Million Liquidation Event Resets Market Bias
The crypto futures market just got a makeover with a massive reset. Over the past few days, Bitcoin’s open interest plummeted from $88 billion to $79 billion, signaling a sharp reduction in leveraged positions. Can we say “shock to the system”? 😱
This reset was fueled by $922 million in crypto position liquidations on August 1, the largest since February 2025. Over $240 million was tied directly to Bitcoin futures. Big moves, big consequences.
Historically, this kind of leverage unwinding tends to be bullish—it clears out the excess risk and leaves space for new long positions. So while the market might feel like it’s in a downward spiral, there’s actually a sneaky opportunity for the savvy. Watch your step, retail traders. We see you.
Crypto analyst Amr Taha also points out that funding rates across platforms like Binance, BitMEX, and Deribit have gone negative. This isn’t something you see during a strong trend, and it shows that retail traders are overwhelmingly betting against Bitcoin. Meanwhile, the market’s gearing up for a massive contrarian surge. The momentum might surprise you. 💥
Binance Net Taker Volume Signals Capitulation
Data from CryptoQuant reveals that Binance’s net taker volume has dipped below -$1.5 billion, a level we last saw on July 25. This is essentially the “panic button” for many retail traders, signaling heavy sell-side pressure.
This drop likely reflects forced liquidation of late long positions, especially those who bought into the rebound above $114,000. It’s almost like watching the market’s emotional rollercoaster in real time. Retail investors, bless your hearts. 💔
Amr Taha also points out that this pattern is familiar: retail investors tend to buy at the tops and sell at the bottoms. It’s the old emotional trading trap. But for those who can handle the pressure, this panic sell-off could mark a local bottom, giving the more strategic traders an opportunity to pounce. 🦅
$120,000 Should Act as a Price Magnet
Bitcoin’s liquidation heatmap shows a dense cluster around $120,000, acting like a magnet for future upward momentum. Technical analyst Michaël van de Poppe mentions that breaking above $120,000 is “a good first step” towards a new all-time high. Keep your eyes on the prize, folks!
He adds that $114,800 and $116,800 are crucial levels to flip, while a brief retest of $110,000 might still happen. But once those hurdles are cleared, we could be seeing Bitcoin soar to $120,000—and beyond—in the coming weeks. Buckle up. 🚀
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2025-08-04 18:16