Key Points
- Bitcoin demand growth slows as ETF and corporate inflows weaken
- Options data points to $120K–$130K price magnet zone
- Short-term holders face risk if BTC drops below $107K
Bitcoin is facing a correction as demand from ETFs and corporate strategies weakens. On-chain data shows slower accumulation despite structural support in broader market activity.
Institutional Demand and Options Positioning
CryptoQuant’s Julio Moreno highlighted that overall demand growth has cooled, with ETF and corporate purchases no longer driving upward momentum.
Apparent demand, a key metric measuring net accumulation, has trended lower since August, reflecting reduced institutional inflows.
At the same time, Glassnode data showed shifts in derivatives positioning. The BTC options net-premium heatmap revealed concentrated call buying between the $124,000 and $130,000 strikes.
More than $41 million in net call premiums clustered in this range, while sub-spot put demand remained light.
This pattern suggests that traders expect Bitcoin to remain magnetized toward the $120,000–$130,000 zone.
The lack of heavy downside hedging indicates consolidation is more likely than a significant bearish extension in the near term.
Short-Term Holders and Market Risk
Alphractal reported that short-term holders accumulated Bitcoin at much higher prices than in past cycles. Their realized price has now risen above $107,000, placing them at risk of losses during declines.
Analysts warned that if Bitcoin breaks below this threshold, leveraged long positions could face rapid liquidations.
Aggregated liquidation heatmaps show a heavy concentration of long exposure just under current levels, amplifying market fragility.
The recent move to $124,000 was identified as a bull trap fueled by liquidity hunting from larger players.
Short-term holders, who often enter markets late, are now heavily leveraged and increasingly vulnerable.
Alphractal emphasized that a sharp drop below $107,000 could spark fear and pessimism. However, such conditions have historically created strong opportunities for longer-term strategic accumulation.
Meanwhile, analyst CRYPTOWZRD compared Bitcoin’s current structure with gold’s past cycles.
He suggested that Bitcoin is mirroring gold’s sideways consolidation before a potential parabolic rally.
Bitcoin traded at $113,530 on August 19, reflecting a 2.46% daily decline, according to CoinMarketCap.
The market cap stood at $2.26 trillion, while 24-hour trading volume reached $71.7 billion, underscoring weaker activity during consolidation.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/bitcoin/bitcoin-price-pauses-as-etf-and-corporate-demand-growth-slows/
