Bitcoin (BTC) traded at $118,559 on Aug. 12
Bitcoin (BTC) traded at $118,559 on Aug. 12, down 0.12% on the day, as market data showed one of the strongest shifts in trading behavior in recent months. The Spot Cumulative Volume Delta (CVD) — a measure of whether more Bitcoin is being bought or sold on spot exchanges — improved 94.3% over the past week. This shift from heavy selling to steady buying has raised expectations that prices could recover if market participation grows.
Spot CVD climbed to -$12.8M, near the upper end of its usual range, which often signals strong buying interest. However, because the value is still negative, sellers remain active.
Spot Volume Falls 22%, Limiting Price Recovery Potential
Spot trading volume — the total amount of BTC changing hands on exchanges — fell 22% to $5.7B. This is close to the lower end of its normal range. It also indicates that, while there is more buying pressure, fewer traders are participating. Without higher trading activity, price rallies may be harder to sustain.
The Relative Strength Index (RSI), which tracks whether an asset is overbought or oversold, rose from 41.5 to 47.5 in the past week. This suggests Bitcoin is recovering from oversold conditions. On the daily chart, RSI stands at 58, showing stronger momentum but still below the 70 level that signals overbought territory.
In futures markets, Perpetual CVD — the same buy/sell measure applied to leveraged perpetual futures contracts — jumped 88.5% to -$0.2B. This shows a move from aggressive selling to active buying. Futures Open Interest, which measures the total value of open futures contracts, dipped 1% to $44.1B, indicating small position reductions after the recent rally.
The Funding Rate — the fee traders pay to keep their futures positions open — eased slightly to $2.9M but remains elevated. Higher funding rates mean traders are still willing to pay to hold long (buy) positions, a sign of bullish sentiment.
Options Data Shows Higher Demand for Downside Protection
Options Open Interest, or the total value of outstanding Bitcoin options contracts, rose 6.74% to $42.4B, showing more trader activity. The 25-Delta Skew, which compares the cost of betting on price drops versus price rises, stayed above its high range at 4.83%. This means traders are still paying more for downside protection.
Institutional flows tell a similar story. U.S.-listed spot Bitcoin ETFs — investment funds that hold actual Bitcoin — saw weekly outflows shrink by 54.6% to -$311.6M. While ETF trading volume fell 27.7% to $13.78B, the reduced outflows show less selling pressure from large investors. This aligns with the changes seen in spot and futures data.
$118K CME Gap Becomes Short-Term Test for Bitcoin Bulls
A key short-term level is the CME gap around $118K. A CME gap is a price difference that appears on the Bitcoin futures chart from the Chicago Mercantile Exchange when it closes for the weekend and reopens at a different price. Many traders watch these gaps because Bitcoin often “fills” them by trading back to that price.
Analysts say $118,000 is acting like a “magnet.” They have noted that, in past market conditions, gap fills at this stage often preceded the next leg higher. They added that while retail traders might panic during the dip, experienced traders could see it as a chance to buy before the next move.
This gap also aligns with the 20-day Exponential Moving Average (EMA) at $116,619. This point can act as a technical support zone. If Bitcoin holds above this area after filling the gap, it could retest $121K resistance. A drop below it could trigger a deeper move toward $114K–$109K.