Was the $114,700 level the bottom price for BTC?: Data suggests it's time for a reversal.
Bitcoin fell to an 11-day low of $114,755 on Monday, sparking debate over whether last Thursday's record high signaled the end of the current bull run. However, four distinct indicators suggest that the correction is only temporary and that Bitcoin could soon reclaim the $120,000 mark.
The Bitcoin options delta metric rose to its highest point in four months, highlighting a sudden and excessive fear. Under balanced conditions, the delta should fluctuate between -6% and +6%. When the demand for protective put options increases, the indicator jumps above the neutral band, while periods of FOMO push it down.
History shows that such events often create strong buying opportunities. On August 5, a similar delta jump was followed by a $9,657 rally in six days. Similarly, when Bitcoin plummeted to $74,587 on April 9, the delta reached 13%, setting the stage for a double bottom and a recovery of $11,474 in just four days.
Some investors now fear that outflows from spot Bitcoin ETFs may begin, especially after a seven-day inflow streak ended on Friday. However, the panic seems unfounded. Between July 31 and August 5, ETFs recorded $1.45 billion in net outflows, which translated to a modest 6% correction to $112,000.
Currently, Tether is trading at a 0.8% discount in China, indicating slight pressure to exit the cryptocurrency market. Still, the figure has remained stable since Friday night, suggesting that there is no worsening of sentiment.
Overall, these four metrics—the options delta, ETF flows, professional traders' positioning, and stablecoin demand—suggest that the Bitcoin correction was a temporary setback and that $114,755 was the likely bottom of this correction.
