What will spark a Bitcoin price’ liquidity rush?

The following are key points.

• Bitcoin crosses the $120,000 threshold as traders increase liquidity either side of spot price.

• The bulls in this analysis are seen addressing the “imbalance” The market will rise.

• 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

The Data of Cointelegraph Markets Pro You can also find out more about the following: TradingView On the same day, BTC volatility was able to cool down.

BTC/USD has reached new highs in the local market, and the current level of $121,100 is the one to beat.

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 in his summary 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 the case of a 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 reported that total futures open interest across exchanges was a new record of $88.7bn on the same day.

Bearish divergences cause concern

Roman is another trader who has been predicting trouble. He was looking at bearish. relative strength index Divergences in the RSI on daily and week-long timeframes. 

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 for four hours continues to be seated “overbought” The territory reinforces expectations for a price drop in the near future.

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.