Bitcoin in Warm But Not Overheated Zone: What Could Happen Next? (Bitfinex Alpha)

Key Points

1. Bitcoin reclaimed its range after a recovery over the last seven days, entering a 'warm but not overheated' zone.

2. Spot ETF inflows turned negative earlier this month, with $1.45 billion withdrawn over four consecutive trading days (July 31 - August 5).

3. The market saw a positive reversal from August 6-8, with inflows exceeding $770 million, and August 11 recorded over $178 million in inflows.

4. BTC briefly rallied close to its all-time high, reaching $122,100 before settling around $118,000, supported by ETF demand and crypto treasury activity.

5. Analysts note a growing relationship between ETF flows and BTC price movements, with a possibility of a near-term retracement to $110,000.

6. The market shows a split between profit-taking and loss-realization, with 70% of short-term coins sold for profit, easing to 45% recently.