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

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Quantum computers could bring lost Bitcoin back to life: Here’s
Quantum computers could bring lost Bitcoin back to life: Here’s

The following are key points.

  • Bitcoin plunges by more than 2%, from its previous high of $120,000 per day to grab liquidity for bids in an expected move.

  • The market projections still see a further retracement.

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

BitcoinBTCAs traders looked to new BTC bottom price targets, ) slid in order to gain bid liquidity on Wednesday at the Wall Street Open.

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

Bitcoin launches classic liquidation grab

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

After the opening of the trading day, the pair passed $120,000. However, momentum was quickly lost as the sell-side took control.

Earlier, Cointelegraph reported Exchange order book liquidity is a call for the return of $117.500.

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 Followers in a part of a tweet posted earlier on Wednesday.

BTC liquidation heatmap (screenshot). Source: CoinGlass

Market participants started to comment on the market structure and saw that a more significant BTC correction could be made 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 chart for 2 hours with RSI data. Source: Michaël van de Poppe/X

Crypto Virtuos, an established trader in the financial market, predicted that a Fibonacci Retracement Level of $113,000 would be reached next.

“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 an X-post summarized.

Crypto Virtuous said that he added that Crypto Virtuous was “pretty optimistic” Fibonacci suggests that the target for the ultimate rebound is $138,000.

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

Altcoins: Beware “froth” The OI is at a record high

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

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,” It warned on Tuesday, in its latest regular newsletter: “The Week Onchain.” 

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

Top altcoin OI. 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 This is 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 a final decision.