bitcoin Holds steady Near $119K With Reduced Lending Risk
Bitcoin (BTC) currently trades just under $119,000. The market is steadier due to less risky borrowing. This helps minimize sharp drops.
Healthier Market Signs: The Estimated Leverage Ratio (ELR), a measure of borrowing activity, hovered between 0.24 and 0.25. This range shows that investors are taking fewer big risks. In May and late July, higher ELR values aligned with soaring prices, showing more speculative behavior.
The decrease in leverage means traders are easing off aggressive positions. This likely prevented rapid sell-offs seen during overly leveraged periods.
- ELR holds steady in the 0.24–0.25 range.
- Traders unwind aggressive bets, reducing market volatility.
- Future growth looks promising with balanced leverage and demand.
Technical Insights: On the 4-hour chart, Bitcoin is close to the middle of its Bollinger Bands, with clear resistance at $119,900. With neither overbought nor oversold conditions, the price shows steady movement.
Short-term moving averages align with long-term ones, signaling potential upside. Clearing $119,900 may push prices toward $123,000. A failure to break above $119,900 and rising ELR could result in a fall to $114,900.
