key takeaways:
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The power of 3 patterns of bitcoin targets $ 126,000 to accumulation, manipulation and a possible distribution phase.
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The incident of liquidation of $ 922 million led to a major reset in the liver post, increasing the chances of market recovery.
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Major levels should be cleaned around $ 115,300 and $ 116,800, with $ 120,000 acting as a strong value magnet.
Bitcoin (BTC) immersed up to $ 112,00 a week, but despite an unstable start for August, BTC’s recent reform may have a Swift Recovery.
Bitcoin “Power of 3” pattern is aimed at $ 126,000
The short -term value action of bitcoin This setup follows the liquidity, indicating how institutional investors operate compared to reactive retail.
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Accumulation: Price stabilized between $ 119,500- $ 115,300, which shows a base-making phase.
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Cunning: A sharp decline, falling down around $ 112,000, suggested a shakeout to implicate late Long Longs and force retail capitulation.
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Distributor: If BTC rebules $ 115,300 firmly at both low and high time, the stage currency is set for a distribution leg towards $ 126,000, a technical goal that align with the square of the recession.
This pattern, if valid, is not only signs of short-term recovery, but also powerful resumes the bull market and holds away from the guard or holding a short-sided traders.
BTC absorbs fair price differences, rebuilds the key support
Bitcoin has effectively absorbed a major high deadline fair price gap (FVG) between $ 115,200 and $ 112,000. This rank also coincides with the previous all-time high since May, which is now acting as an important support area.
In this difference rapidly seals liquidity, followed by a value bend, the power shows that the surface benefits. A support of the previous high in $ 112,000 retired, combined with the absorption of unbalanced supply near $ 115,000, suggests that vendors may grow, which increases the chances of rapid reversal.
$ 922 million liquidation phenomenon resets market bias
The Crypto Futures Market reflects an important reset, indicating a possible change in the situation. In the last few days, the open interest of bitcoin fell from $ 88 billion to $ 79 billion, indicating a sharp decrease in leverage positions.
It came with $ 922 million in the crypto position liquidation on 1 August, most since February 2025, with more than $ 240 million from bitcoin futures.
This type of leverage is a boom of unwanted history, as it reduces extra risk and makes room for a new long position.
Meanwhile, Crypto’s analyst AMR Taha noted that the finance of major platforms such as the mice to the rats, bitmex, and deraibits has spoken, an unusual negative funding means that the long -standing is paid to the shorts to keep the situation open, indicating that the retail traders are huge bias to the future dowsides.
When combined with recent liquidity, this imbalance indicates potental contestry strength. As the Seniite skews bearish and funding compresses, the conditions can take the side of a reversal.
Binen Net Taker Volume Signal Capitulation
The data from the cryptoctive indicates that the volume of the cumulative net of the binense has declined -$ 1.5 billion, the last viewed on 25 July. The reading indicates aggressive cell -skin pressure.
This sharp probability reflects the forced liquidation of longer conditions, especially those recorded above $ 114,000. The above chart shows damage centered in this area.
Related: $ 110K Support Key Bitcoin enters the month of bear with a 5% dip: analyst
Amr Taha says that it is a local floor that provides a possible accumulation opportunity to more calculated traders, a terror-powered cell-affin.
$ 120,000 should act as a price magnet
The liquidation of bitcoin shows a deenus cluster around $ 120,000, if the mentum is built upwards, it acts as a magnet. Technical analyst Michael van de Pope says BTC is in a classic resistance field, given that breakdown over it
He said that there are important levels to flip $ 114,800 and $ 116,800, which take care that a brief form of $ 110,000 is also going on. If these obstacles are clear, a motor may be physical towards $ 120,000 in the coming weeks and the subsequent version.
Related: Is BTC repeating the way for $ 75k? 5 things to learn in bitcoin this week
There are no investment advice or recommendations in this article. Every investment and trading film includes risk, and readers should do their research while taking decisions.