Bitcoin Correction Looms Amid Fading US Buying Pressure

Bitcoin's price momentum is weakening as it faces a risk of correction. The cryptocurrency had strong gains in July, but August has shown signs of decline. Despite rising Open Interest, spot demand and U.S. buying pressure are fading, indicating the current price rise is driven more by leverage than actual buying.

The combination of fading U.S. buying pressure, outflows from Bitcoin ETFs, and a weakening price momentum raises concerns about a potential correction similar to the late Q2 pullback. The recent decline in spot demand and waning institutional demand are also contributing factors.

One key indicator to watch is the trend of Bitcoin ETF flows, which have turned bearish with significant outflows. This could be an early warning sign for a potential price drop.