Key Takeaways:

• Bitcoin’s Power of 3 pattern shows accumulation, manipulation, and a possible distribution phase targeting $126,000.
• A $922 million liquidation event caused a major reset in leveraged positions, increasing the chances of a market recovery. 
• Key levels around $115,300 and $116,800 must be cleared, with $120,000 acting as a strong price magnet.

BTC $114,954 dipped to $112,00 over the weekend, but despite a shaky start to August, BTC’s recent correction might have laid the path for a swift recovery.

“Bitcoin’s ‘Power of 3’ Pattern Targets $126K as Market Resets”

1. The AMD Cycle in Action
Bitcoin is currently completing a three-phase institutional pattern:

• Accumulation: Established base at $115,300-$119,500
• Manipulation: Liquidity sweep to $112K flushed weak longs
• Pending Distribution: $115,300 reclaim could trigger $126K rally

This structural setup mirrors professional capital flows rather than emotional retail trading.

2. Technical Foundations Strengthen
Key developments support bullish potential:
✔️ FVG absorption ($112K-$115,200 zone)
✔️ Previous ATH now acting as support
✔️ $922M liquidations cleared excess leverage
✔️ Negative funding rates (shorts paying longs)

3. Liquidity Dynamics at Play

• Binance’s -$1.5B net taker volume signals capitulation
• $120K remains key liquidity magnet
• Critical levels to watch:
  Support: $112K > $110K
  Resistance: $114,800 > $116,800 > $120K

Why This Works Better:

1. Improved Scannability – Bullet points and clear sections replace dense paragraphs
2. Stronger Narrative Flow – Connects technical patterns with market psychology
3. Actionable Emphasis – Highlights key price levels more prominently
4. Visual Hierarchy – Uses symbols (✔️) and formatting for important takeaways
5. Concise Yet Complete – Maintains all original analysis points in digestible format

Key Terminology Clarified:

• FVG (Fair Value Gap): Price zones with imbalanced order flow
• Liquidation Heatmap: Shows where most stop-loss orders cluster
• Net Taker Volume: Measures aggressive buyers vs sellers