Bitcoin Trades Around $80,000, Experts Warn of Correction Risks

Bitcoin is trading at around $79,500, and the Fear and Greed Index stands at 66 points, indicating greed among retail investors. Experts noted that the price increase is accompanied by retail trader activity, with a TBSR reading of 1.12, suggesting active buying using leverage. However, the negative Coinbase premium indicates weak demand from American institutional investors. The Exchange Whale Ratio has reached 0.93, indicating a large share of significant transfers among the total influx of Bitcoin to exchanges. The combination of high retail activity and weaker institutional demand creates a risk that the price increase lacks sufficient support from spot capital. Analysts also warn of the risk of a long squeeze, which could lead to the liquidation of traders' positions. On September 8, Bitcoin closed trading at $78,450, with an influx of 5,442 BTC to spot exchanges, which is 4.4 times higher than the previous day but only 5.1% above the average over the past 30 days. The current recovery of Bitcoin is not accompanied by abnormally high activity of large deposits, which limits selling pressure.

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