Amid the latest pullback, Bitcoin dipping below $113,000 reflects more than just a trend reversal; it’s a snapshot of rising nerves in the market.

Traders are bracing themselves, with the 30-day options delta skew hitting 12%, its highest reading in four months, suggesting increased demand for downside protection and a growing caution among investors.

These spikes in fear haven’t always been bearish. Back in April, when similar sentiment overload hit, Bitcoin was sitting near $74,500, but within a month it surged nearly $30,000.

History doesn’t guarantee a repeat, but it speaks volumes about how sharp reversals often follow emotional peaks.

One particularly notable thing about this dip, it’s not unfolding in isolation. U.S. import tariff fears, regulatory scrutiny tied to a Trump-linked probe, and underwhelming AI earnings are putting a dent in speculative returns across markets.

Yet Bitcoin continues to hold above $117K, a testament to institutional buying and ETF strength anchoring the digital asset.

Now, letting the narratives settle and liquidity return might pave the way for a rebound.

Watching events like Jackson Hole closely, alongside on-chain metrics, can reveal whether recent swings are simply digestion or a deeper shift in sentiment.

So if $112K holds as a support level, this could very well be the setup for the next leg of the bull run rather than a reset.

Ryan Lee, Chief Analyst at Bitget

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