Bitcoin (BTC) witnessed its usual volatility late Sunday, soaring up to around $107,000 before retracing back to $102,000. This fluctuation is typically observed as the CME futures market opens, which momentarily recalibrates to the comparatively lower liquidity of the 24/7 crypto market.

Key Insights:

• Bitcoin experienced substantial volatility following the opening of CME futures markets.
• Price surged up to $107,000 before falling back to $102,000, impacting liquidity on both trading sides.
• Current market dynamics suggest a potential upswing toward new record highs due to skewed market depth and liquidity.

Bitcoin is edging towards a record high

Despite the latest price action resembling a bearish pattern, it’s notable that the initial spike on the CME was driven by institutional traders rather than retail investors. This deviation indicates that the market could still witness significant price movements.

Moreover, the minimal market depth up to $110,000 against a wealth of orders down to $100,000 shows that Bitcoin is poised for a breakout under the right conditions.

Overall, with liquidity levels now reduced near historical highs, Bitcoin could be one significant news event away from the expected upward move.