Was the Bitcoin price bottom $114.7K?: Data suggests it's time for a reversal

Bitcoin fell to an 11-day low of $114,755 on Monday, sparking debates on whether the recent record high marked the end of the bull run. However, four key indicators hint this dip might just be a temporary setback, with Bitcoin poised to bounce back above $120K.

The Bitcoin options skew metric hit a four-month peak, signaling a spike in fear among traders. Normally, this skew swings between -6% and +6%. A surge above this range indicates a rush for protective puts, while a drop below suggests FOMO is kicking in.

Historical patterns show such fear spikes often precede strong rallies. For instance, a similar skew jump on Aug. 5 was followed by a $9,657 surge in six days. Another on April 9, when Bitcoin hit $74,587, saw a 13% skew, setting the stage for an $11,474 rebound in just four days.

Concerns over spot Bitcoin ETF outflows surfaced after a seven-day inflow streak ended last Friday. Yet, the panic seems overblown. Between July 31 and Aug. 5, ETFs saw $1.45 billion in outflows, leading to only a modest 6% drop to $112K.

With a $152 billion market cap, spot Bitcoin ETFs can handle 1% inflows or outflows without breaking a sweat. The market's liquidity is robust, evidenced by the absence of a 12% price swing within 72 hours since April 7.

Top traders at OKX and Binance barely flinched at the price drop, maintaining their long positions. This data, covering spot, margin, and futures markets, offers a comprehensive look at how the pros are playing the current market.

While some trimmed their longs between Thursday and Friday, the long-to-short ratio has since stabilized. This could mean they're either hesitant to buy at $115K or waiting for a dip to $112K to double down.

Stablecoin demand in China adds another layer to the story. A 2% premium on stablecoins against the US dollar usually signals strong retail interest, while a 0.5% discount often indicates fear. Currently, Tether trades at a 0.8% discount in China, suggesting mild sell pressure but no panic.

In summary, the options skew, ETF flows, top trader positioning, and stablecoin demand all point to $114,755 as the likely bottom of this correction, with Bitcoin ready to rally back above $120K.