Bitcoin Price: $116.5K Magnet & Fed Rate-Cut Bets
Bitcoin price rebounded from below $112,000, testing the 50-day exponential moving average near $112,900 as key support. Bitcoin price faces a cluster of large short positions in the exchange order book at $116,500, acting as a “magnet” that could fuel a rally on liquidation. Fed rate-cut bets for September have firmed on soft inflation and labor data, boosting risk sentiment. On-chain data from CryptoQuant show whales and short-term holders sent over 40,000 BTC to exchanges at a loss on August 1, adding near-term selling pressure. Despite this volatility, long-term metrics indicate net accumulation. More than 160,000 BTC moved into dormant supply in the past month, and OTC positions are rising. Traders should monitor the 50-day EMA, the $116,500 level and on-chain flows to time entry and exit points effectively.
Neutral
The news delivers mixed signals for Bitcoin price. On the bullish side, rising Fed rate-cut bets and long-term on-chain accumulation—over 160,000 BTC added to dormant supply and growing OTC positions—support upside potential. However, significant near-term pressure from whales and short-term holders depositing over 40,000 BTC to exchanges at a loss, along with a tight exchange order book cluster at $116,500, heightens volatility and could cap gains. Technical support at the 50-day EMA around $112,900 offers a floor, yet the balance of liquidation risk and accumulation points to sideways action. As a result, the overall impact is neutral, with traders likely to see amplified price swings and range-bound trading until a clear catalyst emerges.