Bitcoin prices have reached an 11-day low of $114,755, becoming a topic of discussion among investors. However, several indicators suggest that this correction is only temporary.
Changes in Bitcoin options skew
The recent rise in Bitcoin options skew has reached a four-month high, indicating increased fear among investors. Under normal conditions, this indicator fluctuates between -6% and +6%. An increased demand for protective put options has pushed it above the neutral zone, signaling fear among investors.
History shows that such events often provide strong buying opportunities.
ETF flow data for Bitcoin
Flows into Bitcoin-based exchange-traded funds (ETFs) have also raised concerns among investors. A streak of inflows occurred over a seven-day period but has since ended. Nevertheless, net outflows of $1.45 billion from July 31 to August 5 had only a modest impact on the market, leading to a mere 6% correction.
Top trader positions and stablecoin demand
Data from leading traders indicates that they are not reducing their long positions, reinforcing the bullish thesis. Analysis of trader positions on platforms like OKX and Binance has shown little change despite the price drop.
The demand for stablecoins in China also provides further context. Recent data shows Tether trading at a 0.8% discount to the official currency, indicating mild pressure to exit crypto markets.
The gathered data from four key metrics — options skew, ETF flows, top trader positions, and stablecoin demand — suggest that Bitcoin's recent price drop may be a temporary setback, with the price of $114,755 likely being the bottom of the current correction.
