Bitcoin’s price drop below $116K lowers market leverage and short-term profit margins. About 120,000 BTC purchased lifting price above $114K but resistance holds. ETF outflows and neutral derivative funding rates signal cooling speculative interest. The fall in the price of Bitcoin below $116,000 led to a decrease in market leverage and the profitability of operations by short-term holders, analysts from Glassnode concluded. This trend followed a recent peak near $123,000 in July, where a resistance zone formed. Investors who bought Bitcoin above $116,000 are currently experiencing losses. Glassnode’s forecast suggests that a successful breakout above this resistance will signal a return of control to buyers. Despite the decline, there were purchases amounting to approximately 120,000 BTC, which helped push the price back above $114,000. However, demand remains insufficient to overcome the resistance level. Data regarding short-term holders (STH) indicate a balanced market condition. The share of profits among STHs has dropped from 100% to 70%, a typical behavior during corrections within a bull market. The average entry price for short-term holders stands at $106,000, a significant threshold that historically distinguishes short-term bullish and bearish trends. Pressure on the market has also come from spot Bitcoin ETFs. On August 5, withdrawals of 1,500 BTC were recorded—the largest since April 2025. Analysts note that previous outflows of this size tended to be short-lived and temporary. Meanwhile, the derivatives market shows signs of cooling. Funding rates on perpetual swaps have stabilized in neutral territory, signaling a decline in speculative activity and growing uncertainty among traders about near-term price growth. In conclusion, analysts highlight that Bitcoin is currently seeking equilibrium, trading in a range compressed between support at approximately $110,000 and resistance near $116,000. Although the market balance holds, a significant influx of new demand is essential for Bitcoin to break free from this trading corridor and resume an upward trajectory.
