What will spark a Bitcoin price’ liquidity rush?

The following are key points.

• Bitcoin prices are hovering around $120,000 as traders add liquidity to both sides of the price.

• The bulls in this analysis are seen addressing the “imbalance” Markets will go higher.

• Bitcoin’s future bull run is being questioned by long-term bearish divergences.

BitcoinBTC() gained $120,000 in support on Friday at the Wall Street opening as analysts prepared for another short squeeze.

Trader eyes $123,000 BTC liquidity

Data derived from Cointelegraph Markets Pro The following are some examples of how to get started: TradingView The volatility of BTC prices on the short term decreased during the day.

BTC/USD hit new daily highs, the target level is now $121,100.

CrypNuevo, a popular trader who has been analyzing the market’s current setup, said that overhead liquidity was likely to be his next target.

“Liquidations at $120k have been hit,” He summarized his thoughts in part latest analysis On X. 

“Now we’re in this Liquidity Pool (LP) which represents an imbalance in the chart and needs to be fully retraced ($123.2k).”

The Data of CoinGlass Additionally, bids totaled around $118.500. These could represent potential support in a case of market correction.

Popular trader BitBull said that a possible retracement could be due to an increase in open interest (OI) on derivatives markets.

“In the next 1-2 weeks, BTC and alts will have a big leverage flush,” He predicted in part that he would be a X post. 

“This’ll force people to sell their coins as they think that Uptober is over. After that, Bitcoin and alts will rally again and hit new highs.”

CoinGlass’ data puts the total OI of futures across all exchanges to a record-breaking $88.7 Billion on a single day.

Bearish divergences cause concern

Roman, a fellow trader who is bearish on the market, also argued for future trouble. relative strength index Divergences in the RSI on a daily or weekly basis. 

Related: What $110K gap? Bitcoin futures are ‘aggressively long’ as whales return

A bearish divergence occurs when RSI hits lower highs as price hits higher highs — something playing out around Bitcoin’s current $124,500 record.

“I wonder how long $BTC can ignore these bear divergences and lack of momentum on the 1W and 1M,” Roman queried Tuesday. 

“Volume is also telling us there’s a lack of strength. It’s only a matter of time before they play out. Be careful holding here.”

You can also read about the advantages of using Cointelegraph reportedRSI four-hour continues to sit “overbought” The territory reinforces expectations for a price drop in the near future.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.