FameEX Hot Topics | Bitcoin Targets $116K Liquidity Sweep as ETF Comeback Steals Attention

CoinGlass data confirmed that Bitcoin futures open interest reached its lowest levels since July 10 over the weekend, signaling a potential slowdown in market activity. This drop in open interest was seen as a sign that the leverage in the market had been flushed out, which could set the stage for a renewed accumulation phase. Historically, such shakeouts have often been followed by stronger rallies, as they clear out excess leverage and reset market conditions for a more sustainable upward trend.

QCP Capital noted that Bitcoin’s recent pullback, although significant, could be interpreted as a natural corrective phase rather than a sign of deeper market troubles. With macroeconomic factors and structural support still in place, the trading firm expressed cautious optimism, emphasizing the importance of monitoring key indicators such as spot ETF inflows and volatility levels. A recovery in these areas would be seen as a positive signal for Bitcoin’s price action, suggesting that institutional sentiment could be on the mend.

The focus remained on the behavior of the US spot Bitcoin ETFs, with QCP pointing out that the recent outflow of -$812 million marked the second-largest daily outflow on record. While this raised concerns, it was also seen as an opportunity to gauge market appetite. If inflows were to return, it could signal that institutional investors were regaining confidence in the market, providing a crucial boost to Bitcoin’s price. This, combined with the narrowing of implied volatility and skew, would suggest a recovery in the broader market sentiment.

As Bitcoin continued to hover near the $112,000 to $116,000 range, market participants were advised to remain vigilant. The uncertainty in macroeconomic conditions and the potential for further volatility were key factors to consider in the coming days. However, analysts pointed to the possibility of a strong rebound if Bitcoin could stabilize above key levels, particularly the $116,000 price point, which was viewed as a critical threshold for further bullish momentum. Despite the short-term fluctuations, the longer-term outlook for Bitcoin remained positive, with many traders anticipating renewed upward pressure as market conditions stabilize.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.