Buying Bitcoin at 112,000 USD? 5 Signs That Bullrun Is About to Come Back

Bitcoin plummeted to $112,000 over the weekend, but despite the volatile start to August, this correction may just be the springboard for a strong bounce back ahead. Bitcoin’s “Power of 3” Model Aiming for the $126,000 Mark The short-term price movement of Bitcoin is showing the formation of the “Power of 3” market model, which includes three phases: Accumulation (, Manipulation ), and Distribution ( – AMD ). This model reflects how liquidity flows are directed, often related to the strategies of institutional investors — in contrast to the emotional reactions from retail investors. – Accumulation: The price has stabilized in the range of 119,500 – 115,300 dollars, indicating a period of consolidation. – Manipulation: Following that was a sharp drop, bringing BTC down to around 112,000 dollars — seen as a “shakeout” to eliminate late buying positions and trigger a sell-off mentality among individual investors. – Distribution: If Bitcoin can bounce back and maintain the $115,300 mark firmly on both short and long time frames, the market may enter a distribution phase, with price targets aimed at the $126,000 region — coinciding with recent technical resistance clusters.

If this model is confirmed, it not only signals a short-term bounce back but could also mark a strong return of the upward trend, while surprising traders who are on the sidelines or those taking a bearish stance. Bitcoin Fills the Fair Value Gap, Retesting an Important Support Zone Bitcoin has effectively absorbed the reasonable value gap (FVG) on the larger time frame, located in the range from $115,200 to $112,000. This area coincides with the previous historical peak in May, now becoming a key support zone for the market.

The rapid liquidity sweep into this value gap, along with the bounce back price recovery, reflects the underlying strength of the market. The retest of the support area around the old peak of 112,000 dollars, coupled with the absorption of the imbalanced supply near 115,000 dollars, indicates that the selling pressure may have exhausted, opening up a high possibility for an upcoming bullish reversal. $922 Million Liquidation Event Resets Market Direction The crypto futures market has undergone a significant reset, reflecting a marked change in investor sentiment. In recent days, the total value of open interest ( of Bitcoin has sharply decreased from $88 billion to $79 billion, significantly narrowing leveraged positions. This correction coincided with a large liquidation event totaling 922 million dollars across the crypto market on August 1st — the highest level since February 2025 — of which more than 240 million dollars was from Bitcoin futures contracts.

Such a leverage liquidation usually carries positive historical signals, as it helps eliminate excess risks and paves the way for establishing new long positions. Meanwhile, crypto analyst Amr Taha pointed out that the funding rate ) funding fee ( on major exchanges such as Binance, BitMEX, and Deribit has turned negative — a rare phenomenon during strong trend phases. A negative funding rate means that Short positions have to pay fees to Long positions to maintain their orders, indicating that retail investors are leaning heavily towards the expectation that the market will continue to go down. When combined with recent liquidations, this imbalance may be a sign of potential counter-push. In the context of market sentiment becoming extremely negative and the funding rate being suppressed, conditions may be preparing for a strong bounce back. Net Taker Volume on Binance Shows Signs of Surrender Data from CryptoQuant shows that the net taker volume accumulated on Binance has fallen below -1.5 billion dollars — the lowest level since July 25. This indicator measures the net cash flow from market orders, and the deep negative value reflects that active selling pressure is clearly dominating.

This deep decline is likely due to the forced liquidation of late long positions, especially those opened when the price bounced above $114,000. Observing the chart, the losses are mainly concentrated in this price area. Analyst Amr Taha stated that this is a familiar pattern, as retail investors often tend to buy at the peak and sell at the bottom, heavily influenced by emotions rather than a systematic strategy. Such a panic sell-off may have marked a local bottom, creating an attractive accumulation opportunity for more calculated investors. The 120,000 USD mark could become a “price magnet” The liquidation heatmap of Bitcoin shows a dense cluster of liquidations around the $120,000 level, acting as a “price magnet” if the upward momentum is maintained and solidified. Technical analyst Michaël van de Poppe stated that BTC is facing a key resistance zone and breaking through this level will be a “significant step” paving the way for a new historical peak.

Michaël van de Poppe also emphasized that the price levels of $114,800 and $116,800 are key thresholds that need to be surpassed. However, he warned that the risk of the price temporarily returning to retest the support area around $110,000 in the short term still exists. If these resistance levels are successfully surpassed, BTC could very well aim for the $120,000 mark or higher in the coming weeks. $BTC {spot})BTCUSDT(