Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. After hitting a new all-time high (ATH) of $124,474 on Binance on August 13, Bitcoin (BTC) has tumbled toward $113,000, with the next major support zone around $110,000. Analysts warn that more downside could still be ahead for the top cryptocurrency. Bitcoin To Fall More? Crowded Long Trade Gives Hint
According to a CryptoQuant Quicktake post by contributor XWIN Research Japan, Bitcoin open interest across all exchanges has surged past $40 billion, nearing ATH territory. This rise shows both whales and short-term traders are piling into leveraged positions. Related Reading Bitcoin Falls Below $115,000 As Binance Buying Power Ratio Collapses 1 day ago
The chart below highlights the recent spike in BTC open interest, now hovering at $40.6 billion. Compared to August 2024 levels of $15 billion, open interest has grown by more than 150%. Bitcoin open interest has surged past $6 billion | Source: CryptoQuant
The CryptoQuant contributor added that despite this surge, the funding rate has remained positive, showing a strong long bias. While this reflects market optimism, it also signals a crowded trade, with most participants betting on further BTC appreciation. Bitcoin funding rates across all exchanges continue to be positive since the beginning of August | Source: CryptoQuant
As a result, the risk of a long squeeze – forced liquidations of long positions due to aggressive leverage – has risen. XWIN Research Japan explained in their analysis: A sudden price drop can trigger a cascade of forced selling, amplifying volatility. In other words, Bitcoin’s short-term moves remain at the mercy of speculative flows. BTC Fund Holding By Institutions Rises
Despite speculative froth from excessive leverage in the market, BTC fund holdings by Bitcoin exchange-traded funds (ETFs) and institutional investors continue to surge, exceeding 1.3 million according to latest data. Bitcoin fund holdings currently hover around 1.3 million | Source: CryptoQuant
Spot ETFs and corporate treasuries absorbing BTC provides the digital asset a structural bid that steadily reduces its available supply. According to datafrom SoSoValue, US-based spot Bitcoin ETFs currently hold $146 billion in net assets – representing 6.47% of BTC’s market cap. Related Reading Market Jitters Rise As Bitcoin Pulls Back—Is $135K Still Possible? 2 days ago
That said, this week alone has seen more than $645 million in outflows from spot Bitcoin ETFs, following two consecutive weeks of inflows totaling nearly $800 million. Among the ETFs, BlackRock’s IBIT leads with $84.78 billion in net assets as of August 19.
Still, not all signals are bearish. For instance, while BTC slipped below $115,000, its spot trading volume surgedpast $6 billion, giving bulls hope for a potential rebound.
Similarly, technical analyst AO recently suggestedthat BTC could be mirroring gold’s trajectory, with an ambitious target of $600,000 by early 2026. At press time, BTC trades at $113,845, down 1.5% in the past 24 hours. Bitcoin trades at $113,845 on the daily chart | Source: BTCUSDT on TradingView.com Featured image from Unsplash, charts from CryptoQuant and TradingView.com