Bitcoin’s Cooling Speculation and Key Liquidation Zones: What Could Shape Its Next Move?


  • Funding rates have dropped below 0.1%, signaling reduced speculative activity.

  • Exchange outflows reached $113.32 million on August 8, indicating a preference for holding Bitcoin.

  • The $118K liquidation zone is crucial for determining Bitcoin’s next price movement.

Bitcoin’s market shows cooling speculation with falling funding rates and strong exchange outflows, signaling investor confidence. Read more for insights.

Metric Value Comparison
Funding Rate Below 0.1% Decreased from euphoric levels
Exchange Outflows $113.32 million Increased from previous weeks

What is the current state of Bitcoin’s market?

Bitcoin’s market is currently showing signs of cooling speculation, with funding rates dropping below 0.1%. This indicates a shift in trader sentiment as caution grows among leveraged positions.

How are exchange outflows impacting Bitcoin’s price?

Exchange outflows have been significant, with $113.32 million withdrawn on August 8 alone. This trend suggests that investors are opting to hold Bitcoin rather than trade, reflecting confidence in its long-term value.


Frequently Asked Questions

What is the significance of the $118K liquidation zone?

The $118K liquidation zone is critical as it represents a resistance level where many leveraged positions may be liquidated, impacting Bitcoin’s price movement.

How does Bitcoin’s NVM ratio affect its valuation?

The NVM ratio indicates the network’s valuation relative to user activity. A declining ratio suggests that Bitcoin may be overvalued compared to its active engagement metrics.


Key Takeaways

  • Bitcoin shows cooling speculation: Funding rates have decreased, indicating a cautious market.
  • Strong exchange outflows: Investors are pulling Bitcoin off exchanges, reflecting confidence in long-term value.
  • Critical liquidation zone: The $116K–$118K area is essential for determining the next price direction.

Conclusion

In summary, Bitcoin’s market is currently characterized by cooling speculation and strong investor confidence, as indicated by significant exchange outflows. The upcoming challenge lies in navigating the critical liquidation zone around $118K, which could dictate the next price movement.


Bitcoin NVM Ratio 6
Screenshot 2025 08 08 140333
Binance BTC USDT Liquidation Heatmap24 hour 2025 08 08 14 03 57

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