Bitcoin slips to 112k as short sellers retreat

Bitcoin loses momentum as liquidity thins and short-term holders capitulate, signaling a possible pullback.

Bitcoin slips to 112k as short sellers retreat

Bitcoin slipped to about 112k after an early push to 117k on August 16, failing to flip that level into support. The move triggered three straight days of net outflows and left bid-side liquidity thinning, raising the risk of a sharper move if buyers do not return.

Short-term SOPR fell below 1 for the first time in two weeks, signaling capitulation as holders sell near cost. Retail traders remain broadly bullish, but liquidity metrics show shallow bid depth and higher slippage, complicating any bounce. With price testing a key August support, a break below 110k could push the bias to the downside unless fresh buy flow appears.

The latest action underscores how liquidity dynamics drive price more than headlines. When bid walls fade, even a bullish crowd struggles to lift the market. The current setup shows that a fall in liquidity can cap upside, regardless of retail optimism.

If buying interest does not renew, the market may stay range-bound or drift lower through the near term. The pattern echoes earlier in August, but the context now includes thinner order books and stretched risk tolerance among short-term traders, which could amplify the next move.

Highlights

Markets test conviction and the next move will reveal whether liquidity returns or selling resumes.