August 4, 2025
5 min read
William Suberg
Bitcoin targets 16K amid key liquidity walls and ETF flow signals, with support expected near 10K amid cautious optimism.
Bitcoin traders are keenly observing order-book liquidity as the price of Bitcoin (BTC) approaches the $116,000 level. This heightened focus is partly due to the renewed attention on spot Bitcoin ETFs, which could indicate broader market sentiment and institutional appetite.
As traditional financial markets reopened after Monday's Wall Street session, Bitcoin edged closer to the $116,000 mark, with bullish traders targeting sell liquidity within the order books. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading around $115,732 on Bitstamp. Analyst Rekt Capital emphasized the significance of reclaiming the $116,000 level, noting it corresponds to the top of a recently filled Daily CME Gap, a known price magnet in Bitcoin futures.
"It all starts with a reclaim of ~$116k which is the top of the recently filled Daily CME Gap," Rekt Capital stated. Order book liquidity data from CoinGlass revealed a substantial wall of sell orders concentrated near $115,800, currently capping the price. Trader BigMike7335 suggested that a breakthrough above $115,850 would validate the $112,000 area as a potential bottom for Bitcoin. On the buy side, bids were observed stacked from $113,800 down to $112,000, with additional support found near previous all-time highs around $110,000. Trader Cipher X anticipated that if downside liquidity were swept first, a bounce near $110.5K would be likely.
Trading firm QCP Capital expressed optimism about buying opportunities on dips, pointing out that Bitcoin's July monthly close was its highest ever and that the recent price decrease appeared to be a corrective move rather than a capitulation. QCP Capital commented, "Historically, such post-rally shakeouts, particularly those that flush out excess leverage, have laid the groundwork for renewed accumulation. Importantly, this comes at a time when macro and structural tailwinds remain supportive." CoinGlass data confirmed a reduction in open interest on Bitcoin futures to their lowest levels since July 10 over the weekend, indicating a deleveraging event. QCP Capital highlighted that Monday's net flows for US spot Bitcoin ETFs would be a crucial indicator of market appetite, especially after the $812 million outflow recorded on August 1, the second-largest daily outflow on record. The firm remains cautiously optimistic, advising vigilance around spot levels near $112k amidst persistent macro uncertainty. They added that signs of stabilization, such as renewed spot ETF inflows, decreasing implied volatility, and a narrowing of skew, would signal a recovery in institutional sentiment.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.
Source: Originally published at Cointelegraph on Mon, 04 Aug 2025 18:31:09 GMT
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.
Source: Originally published at Cointelegraph on Mon, 04 Aug 2025 18:31:09 GMT