Market Outlook
As Bitcoin approaches the $120,000 level, market analysts forecast a potential liquidity flush within the next two weeks, following a record open interest of $88.7 billion in futures contracts.
Key Insights
- Bitcoin hovers around the $120,000 mark, with traders providing liquidity around this price point.
- Analysts observe bullish traders addressing market imbalances to push prices higher.
- Persistent bearish divergences raise concerns about the sustainability of the bull market.
Bitcoin (BTC) has established a foothold at the $120,000 support level as of Wall Street’s Friday kickoff, just as analysts gear up for a possible short squeeze.
Targeting $123,000 Liquidity
Data from Cointelegraph Markets Pro and TradingView indicate a moderate decline in Bitcoin’s short-term price volatility today.
Trader Comments
Prominent trader CrypNuevo has highlighted the upward trend in ask liquidity, particularly targeting the next level at $123,000:
“Currently, we’re in this Liquidity Pool (LP), which shows an imbalance that needs to be rectified ($123.2k).”
Figures from CoinGlass illustrate significant buying interest near $118,500, suggesting potential support in the event of a market pullback.
On retracement predictions, the well-known trader BitBull predicts a substantial unwind in open interest (OI) in derivatives in the near future:
“In one or two weeks, we will observe a major leverage flush across BTC and altcoins.”
Bearish Divergence Worries
Another trader, Roman, has flagged several bearish relative strength index (RSI) divergences on various timeframes, which may hint at forthcoming challenges:
“Current volume suggests a lack of buying strength. It’s likely that these divergences will manifest soon, so proceed with caution.”
This article does not provide investment advice or recommendations. All trading and investment decisions carry risks, and readers should conduct thorough research.
