The main dishes to remember:
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Bitcoin power of 3 diagrams shows the accumulation, manipulation and a possible distribution phase targeting $ 126,000.
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A liquidation event of $ 922 million caused a major resetting of leverage, increasing the chances of recovery of the market.
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Key levels around $ 115,300 and $ 116,800 should be authorized, $ 120,000 acting as a high price magnet.
Bitcoin (BTC) dropped $ 112.00 over the weekend, but despite a trembling start until August, the recent BTC correction may have thrown the way for quick recovery.
The Bitcoin model “Power of 3” aims $ 126,000
Bitcoin’s short -term price action takes place with a “3” power structure, consisting of accumulation, manipulation and distribution (AMD). This configuration follows liquidity, reflecting the operation of institutional investors in relation to reactive retail flows.
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Accumulation: The price is stabilized between $ 119,500 and $ 115,300, showing a basic construction phase.
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Handling: An acute drop followed, towards the bottom around $ 112,000, suggesting a shaking to trap long long and forcing the capitulation of retail.
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Distribution: If BTC firmly recovers $ 115,300 on low and high deadlines, the scene could be placed for a distribution stage around $ 126,000, a technical target aligning with recent resistance clusters.
This scheme, if validated, not only indicates short -term recovery, but potentially takes up the bullish market and catches the merchants who are sidelined or short -lasting.
BTC absorbs the space of fair value, retests the key support
Bitcoin has actually absorbed a gap of larger time (FVG) key between $ 115,200 and $ 112,000. This range also coincides with the summit of all previous time from May, which now acts as a critical support zone.
The rapid scanning of liquidity in this difference, followed by a price rebound, reflects the force below the surface. Support support for a previous summit at $ 112,000, combined with the absorption of the unbalanced offer nearly $ 115,000, suggests that the sellers can be exhausted, increasing the chances of a bullish reversal.
The liquidation event of $ 922 million resets the market bias
The market for future crypto reflects significant reset, pointing to a potential change in feeling. In recent days, Bitcoin’s open interest fell to $ 79 billion, compared to $ 88 billion, reporting a sharp reduction in lever -effect positions.
This came next to $ 922 million in crypto-position liquidations on August 1, the highest since February 2025, with more than $ 240 million linked to Bitcoin Futures.
This type of lever effect relaxing is historically optimistic, because it reduces the excess risk and creates space for a new long positioning.
Meanwhile, the Crypto AMR Taha analyst notes that funding rates on the main platforms such as Binance, Bitmex and Deribit have become negative, a rare event for strong trend phases. Negative funding implies that shorts pay long to keep the positions open, indicating that retail traders are strongly biased towards other drawbacks.
When associated with recent liquidations, this imbalance is referring to a potential upset force. While the biaise feeling of financing and financing compresses, the conditions could promote a rebound.
Binance Net Paker Volume Signals Capitulation
Cryptoque data indicates that the cumulative volume of the Binance Cumulative net fell below – $ 1.5 billion, a level seen for the last time on July 25. This metric measures the net flow of market orders, with strong negative readings indicating aggressive pressure on the sale side.
This clear drop probably reflects the forced liquidation of late long positions, in particular those in the rebound over $ 114,000. The above graph shows concentrated losses in this area.
Related: Support key of $ 110,000 while Bitcoin enters the bear month with a decrease of 5%: analyst
AMR Taha says that this aligns with a familiar model where retail investors tend to buy ups and to sell stockings, more motivated by emotion than on the strategy. This panic sale could mark a local background, offering more calculated merchants an opportunity for potential accumulation.
$ 120,000 should act as a price magnet
The Bitcoin liquidation thermal card shows a dense cluster around $ 120,000, acting like a magnet if the ascending momentum is built. The technical analyst Michaël Van de Poppe says that BTC is in an area of crucial resistance, noting that the rupture above is “a good first step” towards a new summit of all time.
He stresses that $ 114,800 and $ 116,800 are key levels to return, while warning that a brief detection of $ 110,000 is still possible. If these obstacles are released, a movement around $ 120,000 and more could materialize in the coming weeks.
Related: BTC repeats the path of $ 75,000? 5 things to know in Bitcoin this week
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
