Bitcoin News Today: Bitcoin Traders Watch $115,800 Liquidity Cluster for Breakout Signal

Bitcoin’s price has recently approached a critical liquidity cluster near the $116,000 level, with market participants closely monitoring for signs of a potential breakout or consolidation. The price action has been influenced by a combination of short-term order-book dynamics, macroeconomic sentiment, and the ongoing anticipation surrounding the performance of Bitcoin spot ETFs [3].

On-chain data from Cointelegraph Markets Pro and TradingView showed Bitcoin trading at $115,732 on Bitstamp, with liquidity walls forming both above and below this level. Traders observed that the price was pinned near $115,800, where a significant wall of sell orders existed. A successful breakout above $115,850 would confirm the $112,000 area as a potential bottom, according to trader and analyst BigMike7335 [3].

Meanwhile, the recent weekend saw a rebound in Bitcoin’s price following the reopening of traditional financial (TradFi) markets. This led to renewed optimism among traders, with many noting that Bitcoin had filled the Daily CME Gap—a key technical indicator—suggesting that the price might now attempt to reclaim recent highs [3].

The market’s focus has also shifted toward Bitcoin ETF flows, which are seen as a key barometer for institutional sentiment. Data from CoinGlass revealed that open interest in Bitcoin futures had fallen to its lowest level since July 10, indicating a possible reduction in leveraged positions. This aligns with QCP Capital’s analysis that recent price corrections have been more corrective than capitulatory, potentially setting the stage for renewed accumulation [3].

However, ETF inflows have been mixed. On August 1, the netflows for US spot Bitcoin ETFs reached -$812 million, marking the second-largest daily outflow on record. This has led to increased caution among market participants, particularly as Bitcoin trades near the $112,000 level amid lingering macroeconomic uncertainties [3].

The broader cryptocurrency landscape has also seen a shift in institutional capital, with Ethereum-based ETFs attracting more inflows than Bitcoin counterparts. This trend raises questions about Bitcoin’s dominance in the ETF space, though its position as the largest and most liquid cryptocurrency remains intact [3].

Traders and analysts remain divided on the immediate outlook. Some, like Cipher X, suggest that a first sweep of the downside could result in a bounce near $110,500, while others argue that renewed ETF inflows, reduced implied volatility, and a narrowing of skew could signal a recovery in institutional sentiment [3].

As Bitcoin navigates this critical liquidity zone, the coming weeks will likely be decisive in shaping its near-term trajectory. The interplay between on-chain metrics, ETF performance, and broader market conditions will continue to influence price action and investor sentiment.

Source:

[1] https://www.instagram.com/reel/DM6sbE5BWSx/

[2] https://twinpeaksdigital.net/

[3] https://leapdigitalinvestments.com.au/