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Bitcoin Grabs Bids Liquidity of $117.500 Amid “Frothy” Altcoin Markets

Bitcoin By
Bitcoin Whales Awaken after 14 years
Bitcoin Whales Awaken after 14 years

Important points

  • Bitcoin drops more than 2 percent from its daily high of $120,000 to grab bid liquidity. This was an expected move.

  • However, market forecasts predict a more significant retracement.

  • “Froth” As altcoin interest reaches new highs, a trend is emerging.

BitcoinBTCAs traders looked to new BTC bottom price targets, ) dropped in order to provide bid liquidity for Wednesday’s Wall Street Open.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin launches classic liquidation grab

The Data of Cointelegraph Markets Pro You can also find out more about the following: TradingView BTC/USD fell by over 2% in one day.

The pair reached $120,000 after the open of trading, but the momentum soon vanished when the pressure from the sellers took hold.

Earlier, Cointelegraph reported On exchange order-book liquidty, a return towards the $117.500 area is called for.

The data shows that traders have liquidated over $500 Million in crypto-crossings over the last 24 hours. CoinGlass Shows new liquidity added nearer to the price.

“The liquidity of long and short high leverage is very juicy,” CoinGlass has told X follows in a part of a tweet posted earlier on Wednesday.

BTC liquidation heatmap (screenshot). Source: CoinGlass

Participants began to notice that market structure could lead to a larger BTC price drop to bolster support.

“Not an actual breakout upwards on $BTC,” crypto trader, analyst and entrepreneur Michaël van de Poppe concluded The overnight trip can cost you up to $120,000

“Again a liquidity sweep and back in the range, which makes it likely that we’re going to retest the lows of the range again.”

BTC/USDT 2 hour chart with RSI. Source: Michaël van de Poppe/X

Crypto Virtuos, a popular trader, suggested that 113,000 dollars could be next due to an important Fibonacci level.

“I think, we might see a short retrace/correction. Could be 6/7% and that could push the price to the .618 level which is 113K, after that, we could see another push upwards,” Part of a X-post summarized.

Crypto Virtuous said that he added that Crypto Virtuous was “pretty optimistic” Fibonacci Analysis suggests a $138,000.

BTC/USDT chart for 1 day with Fibonacci levels. Source: Crypto Virtuos/X

Alert: Altcoin “froth” The OI is at a record high

Glassnode, a blockchain analytics company, has also warned of the crypto market. “froth” Coming for the current altcoin boom.

Related: ‘Altseason is here’ — 5 things to know in Bitcoin this week

High levels of open interest (OI) across derivatives markets puts upside momentum at risk.

“Such conditions point to a degree of froth starting to form in the market, and may leave it more susceptible to sharp volatility,” In the most recent edition of “The Week Onchain.” 

“Elevated leverage tends to amplify both upside and downside volatility, and can contribute to a more reflexive and fragile market environment.”

Source: Glassnode Glassnode: Source of the altcoin

The OI (Other Indicated Value) for the four most popular altcoins, ranked in order of market capitalization, reached $40 billion Monday. Glassnode data Confirms a record high.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making any kind of decision.