{"id":6427,"date":"2025-08-16T04:11:09","date_gmt":"2025-08-16T04:11:09","guid":{"rendered":"https:\/\/bitcotasks.com\/blog\/bitcoin-holds-near-119000-as-lower-leverage-reduces-correction-risk\/"},"modified":"2025-08-16T04:11:09","modified_gmt":"2025-08-16T04:11:09","slug":"bitcoin-holds-near-119000-as-lower-leverage-reduces-correction-risk","status":"publish","type":"post","link":"https:\/\/bitcotasks.com\/blog\/bitcoin-holds-near-119000-as-lower-leverage-reduces-correction-risk\/","title":{"rendered":"Bitcoin Holds Near $119,000 As Lower Leverage Reduces Correction Risk"},"content":{"rendered":"

Bitcoin (BTC) staged a mild rebound from yesterday\u2019s inflation-driven drop to $117,180, climbing back toward $119,000 at the time of writing. A declining leverage ratio suggests the top cryptocurrency\u2019s bullish momentum could persist, keeping it in the running for a new all-time high (ATH) in the near term.<\/p>\n

Bitcoin Leverage Ratio Falls, Bulls Rejoice<\/h2>\n

According to a CryptoQuant Quicktake post by contributor Arab Chain, Bitcoin\u2019s leverage ratio across all cryptocurrency exchanges has sharply declined from its late-July and early-August peak of 0.27.<\/p>\n

Notably, the ratio dropped to 0.25 in early August before a modest rebound. In contrast, the period from May to late July saw both the price and leverage ratio climb in tandem, signaling an influx of traders opening larger positions.<\/p>\n

\"bitcoin\"<\/p>\n

In contrast, this time leverage has fallen without a comparable drop in price – a sign that risk has eased since the recent uptrend. Arab Chain notes that this may be the result of high-risk positions being liquidated or traders exiting the market amid volatility.<\/p>\n

With BTC holding around $119,000, the lower leverage ratio is a bullish sign, suggesting that the latest price gains are fueled more by genuine liquidity than speculative excess.<\/p>\n

A continued decline in leverage could further reduce the likelihood of a sharp correction. Conversely, a sudden spike in leverage alongside a price rally would raise the risk of a pullback. The analyst added:<\/p>\n

\n

If leverage remains at moderate or low levels while the price remains stable, this could provide a stable base for a new uptrend. An estimated leverage ratio (ELR) holding between 0.24\u20130.25, accompanied by a gradual price break above 120K, could indicate a spot-supported upside and a possible extension toward the July highs, with moderate funding and slowly rising open interest.<\/p>\n<\/blockquote>\n

However, a quick jump in the leverage ratio above 0.27 before or during a test of $120,000\u2013$124,000 could signal high liquidation risk and the potential for a sharp downward \u201cshakeout.\u201d<\/p>\n

On-Chain Data Points To Potential Selling Pressure<\/h2>\n

While lower leverage is encouraging for Bitcoin bulls, on-chain data – particularly rising exchange reserves and whale transfers – hints at possible selling pressure ahead.<\/p>\n

For instance, Binance\u2019s BTC reserves have recently surged to 579,000, raising concerns of profit-taking after Bitcoin\u2019s recent rally to a fresh ATH. Likewise, more BTC miners are moving their holdings to Binance, potentially preparing to sell.<\/p>\n

Adding to the caution, some analysts warn of a possible pullback to $110,000 to fill outstanding fair value gaps. At press time, BTC trades at $118,672, down 0.1% in the past 24 hours.<\/p>\n

\"bitcoin\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin (BTC) staged a mild rebound from yesterday\u2019s inflation-driven drop to $117,180, climbing back toward $119,000 at the time of writing. A declining leverage ratio suggests the top cryptocurrency\u2019s bullish momentum could persist, keeping it in the running for a new all-time high (ATH) in the near term. Bitcoin Leverage Ratio Falls, Bulls Rejoice According…<\/p>\n","protected":false},"author":1,"featured_media":6428,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[136,65,740,1401,111,73,71,19,254,255,3189,3190,2603],"class_list":["post-6427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-binance","tag-bitcoin","tag-bitcoin-ath","tag-bitcoin-leverage","tag-bitcoin-news","tag-btc","tag-btcusdt","tag-crypto","tag-cryptocurrency","tag-digital-asset","tag-elr","tag-leverage-ratio","tag-on-chain-data"],"_links":{"self":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/6427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/comments?post=6427"}],"version-history":[{"count":0,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/6427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media\/6428"}],"wp:attachment":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media?parent=6427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/categories?post=6427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/tags?post=6427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}