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Bitcoin Price Analysis: Liquidity Grabs and What They Mean for the $105K Support Level
Bitcoin Price Action Sparks Volatility – Bitcoin’s order book liquidity is steadily increasing as the cryptocurrency consolidates its recent relief bounce, sparking speculation of a potential rally towards the $111,000 level. Market participants are closely watching the dynamics, anticipating a fresh liquidity grab that could push BTC/USD to new heights.
Liquidity Sets the Stage for Next Price Movement
Following a sharp rebound from multi-week lows, BTC has maintained the $105,000 support level, helped by geopolitical developments such as the Middle East ceasefire. However, as BTC price consolidates, liquidity clusters are forming both above and below the current spot price. Such liquidity accumulations often precede a sharp move designed to “grab” liquidity before reversing direction.
Trader and analyst Mark Cullen shared insights on social media, noting that Bitcoin might edge toward the $107,000 range before dipping back to sweep liquidity below $105,000-$104,000 via a quick wick. This aligns with CoinGlass data tracking liquidation price points, highlighting $108,000 as a key resistance area fueled by renewed liquidity near all-time highs.
Upside Momentum Favored, But Watch Key Levels
Fellow trader Jelle emphasized the growing liquidity above current price levels, suggesting an increased likelihood of upward movement, with $111,000 as a potential next target. Conversely, trader Skew identified $103,000 as a pivotal support level if a downside liquidity grab occurs.
Market positioning currently remains neutral, with longs targeting higher levels and shorts acting as hedges, increasing the volatility potential. As summarized, “The more liquidity that gets attracted here = greater the reaction.”
Monthly Close and Macroeconomic Factors in Focus
Volatility is expected to intensify ahead of critical US economic data releases and the monthly candle close. On Friday, the Federal Reserve’s preferred inflation gauge will be published amid signals that interest rate cuts could be on the horizon.
Trader and analyst Rekt Capital highlighted the importance of the monthly close, stating that a close above approximately $102,400 would confirm a monthly range breakout, potentially signaling sustained bullish momentum for BTC.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
