Bitcoin Drops Below $115,000 Amid Declining Binance Buying Power Ratio

Bitcoin (BTC) has dropped below $115,000 for the first time since August 6, indicating potential weakening of bullish momentum. This decline raises concerns about a possible price correction.

Binance Buying Power Ratio Signals Weak Demand

The Binance Buying Power Ratio, an indicator of market health, suggests a downturn for Bitcoin.
This ratio compares stablecoin inflows to Bitcoin outflows on Binance, reflecting available capital to buy BTC.
A recent sharp decline in the ratio indicates weaker demand and increased risk of correction.
The ratio peaked at 2.01 on August 14, but fell to -0.81 within 48 hours, showing more buying power left Binance than entered.
Bitcoin's price corrected 4.7% over the past week, currently trading slightly below $115,000 with support around $110,000.

The analysis highlights Binance as the market's center of gravity, where a falling Buying Power Ratio indicates exhausted liquidity and high correction risk.

Outlook for Bitcoin in September

If Bitcoin remains above $110,000, resistance is expected around $127,000, with potential to reach $140,000.
Analyst KillaXBT states BTC must hold above $115,787 to target $125,000 - $127,000 in September.
Currently, BTC trades at $114,988, down 2.4% in the last 24 hours.