Bitcoin’s price hovered around $87,000 as the U.S. stock market opened, hinting at possible short liquidations.
Key Insights:
- Analysts suggest that Bitcoin conditions may indicate a rebound to $90,000.
- Traders are divided on short-term price moves.
- U.S. economic data has uplifted stock markets without impacting cryptocurrencies.
Potential Pull to $89,000
Data from Cointelegraph Markets Pro and TradingView indicated stable Bitcoin trading activity.
BTC/USD One Hour Chart. Source: Cointelegraph/TradingView
A stable market allowed liquidity to increase around the $88,000 mark, drawing attention for potential trading strategies. “We’ve detected a substantial number of short liquidations around $88,253.90, suggesting a likeliness of price rise towards this mark,” noted TheKingfisher in a recent post on X.
BTC Order Book Liquidity Data. Source: TheKingfisher/X
Crypto investor Ted Pillows highlighted $89,000 as a crucial level, asserting, “If Bitcoin reclaims $89,000, the upside liquidity will likely be engaged first. Conversely, a drop below $85,000 would reset downside liquidity before a possible rebound.”
Data from CoinGlass pointed to significant liquidity thresholds at $84,500 and $88,500 at press time.
BTC Liquidation Heatmap. Source: CoinGlass
Market analyst Lennaert Snyder observed that the ratio of long to short positions among traders is approximately equal as they approach the $89,000 threshold. “We need Bitcoin to trigger some stop losses to catalyze the next major move,” he remarked.
“I see two scenarios: either we surpass $89K, or hit the $80.6K lows and recover.”
Bitcoin Remains Steady Amid Rising S&P 500
The day’s economic data had a minor effect on Bitcoin’s performance.
US jobless claims fell short of expected numbers, indicating potential improvements in the labor market. Despite this, stock prices surged after markets opened, buoyed by positive expectations around a potential Federal Reserve interest rate cut in December.
The CME Group’s FedWatch Tool showed an 83% chance of a 0.25% rate cut at the Federal Reserve’s December 10 meeting—up from just 30% a week earlier.
Fed Rate Probability Comparison (screenshot). Source: CME Group
Even with growing fears in the market, the trading resource The Kobeissi Letter emphasized that the S&P 500 index remains a mere 2% from achieving record highs.
“Asset owners are thriving,” they concluded.
“Fear levels among investors are escalating: The cost of a 5-year put option hedging against a drop of 55% in the S&P 500 recently climbed to 46 basis points, marking the highest since April’s downturn. Excluding that timeframe, this reflects a two-year peak.”
This article is informational and does not serve as investment advice. Remember to conduct due diligence when considering any investment opportunities.
