Bitcoin price action remains volatile in the current month, with analysts identifying the $116,500 level as a critical technical support point. Market participants anticipate potential liquidations of short positions if the price approaches this threshold.
Investor sentiment presents a mixed picture, reflecting uncertainty about immediate price direction. While expectations of a near-term correction persist, a prevailing consensus points towards a 0.25% Federal Reserve rate cut at the upcoming September meeting, which could strengthen the case for higher Bitcoin prices.
This Federal Reserve decision represents a pivotal market event, introducing significant complexity into the cryptocurrency’s near-term price forecast.
Recent price dips below key levels triggered substantial sell-offs. Both retail and large investors (‘whales’) participated, moving significant amounts of Bitcoin onto exchanges at a loss, indicating a prevailing trend of risk reduction in the market.
Countering the selling pressure, underlying demand demonstrates resilience. Data indicates significant accumulation of approximately 160,000 BTC within the last 30 days. Concurrently, reserves at Over-The-Counter (OTC) desks have notably increased, signaling sustained confidence among long-term investors.