BTC liquidity battles continue with $140K target intact
Key takeaways:
- Bitcoin's consolidation stems from negative Binance taker volume and weak spot demand reflected in US/Korean premium indexes.
- Despite sideways movement, BTC's defense of $115,000 with strong buyer absorption indicates bullish conviction for higher prices.
Bitcoin failed to sustain momentum following its $123,100 all-time high last Monday, with Binance order flow showing notable retail selling pressure. Regional demand indicators paint a cautious picture:
- US Market: The Coinbase Premium Index (tracking price differentials vs. global exchanges) stayed flat through July, suggesting US investors are either profit-taking or awaiting better entries despite BTC's rally.
- Korean Market: The Korea Premium Index turned negative, indicating BTC now trades at a discount on local exchanges - a clear sign of persistent retail selling and waning trader enthusiasm.
This divergence between weakening regional demand and strong institutional support at $115k creates the current consolidation environment.
Bulls hold as Bitcoin remains in liquidity battle
While recent data reveals some bearish sentiment, Bitcoin's ability to maintain support above $110,000-$115,000 remains a positive sign. Market analyst Boris Vest observes that the current trading range - with sellers being absorbed around $116,000 and buyers facing resistance near $120,000 - reflects a healthy, balanced market.
Notably, despite significant selling pressure on Binance (evidenced by a -$4.1B CVD), buyers quickly responded with $2.3B in demand, demonstrating strong support at these levels. This resilience suggests bulls retain control as long as the mid-$110K zone holds. The extended consolidation period may actually strengthen the case for an eventual upside breakout.
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