Bitcoin risks drop to $108K but dip buyers step in

The following are key points. 

• Bitcoin’s sale has intensified but spot buyers have increased their allocation. 

• Data from the heat map of liquidations suggests that sales could go up to 107,000 dollars.

BitcoinBTCThe price of ) has fallen to its lowest level in two weeks, $108,865. This week’s selling, during the Asia session, has eaten into the gains that were made in each US session. 

Hyblock’s heatmap of liquidation data shows that traders bought intraday lows throughout the week. liquidation cluster The risk absorption ranges from $111,000 up to $107,000. 

Bitcoin’s daily price is still driven by perpetual futures activity, as well as the downside risk. heavy selling from the institutional investor-sized cohorts (1,000 to 10 million) continues to overwhelm the spot purchasing seen among retail-investor-sized (100 to 1,000) orders.  

Despite Bitcoin almost falling below $100,00, today’s notable event is that the spot-orderbook aggregated bid-ask has shifted back in the direction of buyers. The metrics measure “the relationship between the number of buy orders (bids) and sell orders (asks) in an order book,” The ratio is between -1 to 1, where zero indicates that there are equal numbers of orders for buy and sale in the orderbook.

Hyblock, 

“A bid/ask ratio that is greater than 0 indicates that there are more buy orders than sell orders in the order book, which could suggest that there is greater demand for the asset at the current price level.”

Related: Bitcoin faces ‘imminent’ $110K retest as US dollar hits three-week high

When the metric is set to only 10% depth on spot exchanges, buyers begin to take action as the prices fell from $111200 to $105,553. This buying can be seen in the 4-hour cumulative volume differential, which shows an increase in volume. 

The spot volume pales in comparison with the trading seen on perpetual futures, but the return of an upward-tilted bid-ask is unprecedented since the last time it occurred was between September 5 and Sept. 7. This was right before BTC rose from $107 500 to $118 200, its most recent high. 

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.