Key Takeaways
Bitcoin slid beneath $112K with $600 million in losses and $475 million liquidations. Merchants now watch $110K as key protection in opposition to deeper draw back.
On the twenty fourth of August, Bitcoin [BTC] broke beneath $112k. And it wasn’t simply one other dip. As an alternative, it triggered a transparent risk-off rotation.
The transfer was rapidly validated as almost $600 million in Realized Losses hit the market the subsequent day, marking the month’s largest flush.
The fallout? A $475 million Lengthy Liquidation sweep adopted, the deepest washout of leveraged longs because the April tariff-driven FUD.
In quick, one help break was all it took to set off a pointy flush, with $110k now the important line on the chart.
Bitcoin’s fragile market construction uncovered!
One take a look at Bitcoin’s chart reveals why $112k carried weight.
On the 2nd of August, BTC retested this help after topping out at $123k simply twenty days earlier, and from there, it ripped 10.7% in two weeks to notch a recent all-time excessive.
Nonetheless, when the subsequent retest didn’t ship the same bounce, market construction flipped bearish. As confirmed by $600 million in Realized Losses, as HODLers with greater value foundation rushed to exit
Supply: TradingView (BTC/USDT)
The end result? Bitcoin posted three straight periods of decrease lows.
The primary wick tapped $110,305, the second $110,185, and the third stretched right down to $108,761. Naturally, that left short-term help beneath pressure, with bears urgent into liquidity pockets just under $110k.
Merely put, BTC is clinging to $110k as its final near-term protection. If this stage offers means, the trail opens for a deeper drawdown into the $107k-$105k zone the place heavier bid curiosity is prone to emerge.
BTC dangers $100k slide with out macro increase
The Crypto Volatility Index (CVI) read 47.69, at press time, displaying reasonable chop out there
Even after the break, panic hadn’t kicked in. The Worry & Greed Index held impartial at 47, up 4 factors from yesterday.
Spot ETFs flipped constructive too, signaling regular bid-support creeping again. In the meantime, Open Curiosity (OI) stayed muted, which means leverage hasn’t crowded again in but.
On prime of that, this stored BTC structurally bearish—although any pickup might rapidly flip the bias.
Flows favor ETH, not BTC
Supply: X (Willy Woo)
Nonetheless, one key headwind for Bitcoin stays the ETH/BTC ratio.
Flows into Ethereum [ETH], operating about $0.9B per day (silver), at the moment are catching as much as BTC’s inflows (orange).
On prime of that, whereas BTC ETFs have turned constructive, ETH ETFs have raked in over $1 billion throughout the final 4 transactions, displaying capital rotating aggressively into ETH.
Having mentioned that, until a macro catalyst like a Fed pivot lands, whales are prone to preserve risk-off flows rotating into Ethereum, leaving Bitcoin uncovered to a deeper slide towards $100k.
