Key Takeaways
Bitcoin slid below $112K with $600 million in losses and $475 million liquidations. Merchants now watch $110K as key protection towards deeper draw back.
On the twenty fourth of August, Bitcoin [BTC] broke under $112k. And it wasn’t simply one other dip. As a substitute, it triggered a transparent risk-off rotation.
The transfer was rapidly validated as practically $600 million in Realized Losses hit the market the following day, marking the month’s greatest flush.
The fallout? A $475 million Lengthy Liquidation sweep adopted, the deepest washout of leveraged longs for the reason that April tariff-driven FUD.
In brief, one assist break was all it took to set off a pointy flush, with $110k now the vital line on the chart.
Bitcoin’s fragile market construction uncovered!
One have a look at Bitcoin’s chart reveals why $112k carried weight.
On the 2nd of August, BTC retested this assist after topping out at $123k simply twenty days earlier, and from there, it ripped 10.7% in two weeks to notch a contemporary all-time excessive.
Nonetheless, when the following retest did not ship an identical bounce, market construction flipped bearish. As confirmed by $600 million in Realized Losses, as HODLers with larger value foundation rushed to exit
Supply: TradingView (BTC/USDT)
The outcome? 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 assist below pressure, with bears urgent into liquidity pockets slightly below $110k.
Merely put, BTC is clinging to $110k as its final near-term protection. If this stage offers manner, the trail opens for a deeper drawdown into the $107k-$105k zone the place heavier bid curiosity is more likely to emerge.
BTC dangers $100k slide with out macro enhance
The Crypto Volatility Index (CVI) read 47.69, at press time, exhibiting average chop available in the market
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, that means leverage hasn’t crowded again in but.
On high of that, this saved 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], working about $0.9B per day (silver), at the moment are catching as much as BTC’s inflows (orange).
On high of that, whereas BTC ETFs have turned constructive, ETH ETFs have raked in over $1 billion throughout the final 4 transactions, exhibiting capital rotating aggressively into ETH.
Having mentioned that, except a macro catalyst like a Fed pivot lands, whales are more likely to preserve risk-off flows rotating into Ethereum, leaving Bitcoin uncovered to a deeper slide towards $100k.
