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. 

• The heatmap of liquidation data indicates that the sale could reach $107,000.

BitcoinBTCThe price of ) has fallen to its lowest level in two weeks, $108,865. Although a number of investors have been interested in buying these lows, sales during the Asia session are eroding the gains that were made in each US session. 

Hyblock data on liquidation shows that during the last week traders have bought intra-day lowers. liquidation cluster Composed of long leveraged positions with a risk of absorbtion ranging from 111,000 to 107,000 dollars. 

The daily price of Bitcoin is driven by the perpetual futures market, in addition to downside liquidity 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,” This ratio can range from -1 to 1 with a zero showing the same number of orders for both buy and sale in the order books.

Hyblock was quoted as saying: 

“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

The metric of 10% depth for only the spot markets shows that buyers began to enter the market as the price dropped to $110 553, from $111 200. In the four-hour cumulative delta of the anchor, a significant increase in volume can be seen. 

Although spot volumes are small compared to buying and selling on the perpetual futures market, the return of an upward-tilted bid-ask is unprecedented since the last time it occurred between Sept. 5 and Sept. 7. This was right before BTC climbed from $107500 to its latest price peak at $118200. 

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.