Bitcoin Approaches $119,000 as Leverage Ratio Declines

Bitcoin (BTC) rebounded from a recent drop, recovering to around $119,000. A declining leverage ratio indicates potential bullish momentum, supporting the possibility of a new all-time high (ATH).

Key Developments

Bitcoin's leverage ratio fell from 0.27 in late July to 0.25 in early August.
This decline occurred without a significant price drop, suggesting eased risk.
The lower leverage indicates price gains are driven by genuine liquidity rather than speculation.
A sustained low leverage could lead to a stable base for future price increases.
A sudden rise in leverage above 0.27 during price tests of $120,000–$124,000 might indicate liquidation risk.

On-Chain Indicators

Rising exchange reserves and whale transfers suggest potential selling pressure.
Binance’s BTC reserves increased to 579,000, raising profit-taking concerns.
Miners moving BTC to Binance may be preparing to sell.
Analysts caution about a possible pullback to $110,000 to address fair value gaps.

As of now, BTC trades at $118,672, down 0.1% over the past 24 hours.