Key Points:
Participants in the Bitcoin market bet on fresh short squeezes as liquidity stacks up on exchange orders on price.
After a trip to punish Long the day before, the second half of the radar is on the radar.
Bitcoin is regaining the command of total crypto market capitalization.
Bitcoin (BTC) bouncing back to $117,000 from Thursday’s trip amid a desire to narrow down “a massive” BTC short positions.
Bitcoin sets the stage for upward price spikes
Data from CointeLegraph Markets Pro and TradingView showed that BTC/USD fell to a local low of $117,200 on BitStamp.
This helped clear some of the bid liquidity in the exchange order book, but on the day I was asked about the radar of market participants.
Data from monitoring resource Coinglass confirmed a significant accumulation of overhead liquidity above spot prices, supported by DIP below $118,000 on Wednesday.
As Cointelegraph continues to report, such fluidity clusters tend to have a “magnet” effect on prices, with late participants often being punished up and down by snap movements.
“Bitcoin liquidity is piled up on the top side,” trader and investor Mr. Crypto said of the current setup in X’s post.
“Large short apertures are inevitable!”
fellow trader Crypto Rover described the short squeeze scenario as the “obvious” next step.
The day before, trader Daan Crypto Trades claimed that $120,000 and $115,000 were key price levels to monitor.
“$BTC is still stuck within this range. There are a lot of positions on both sides right now,” he said.
“An eye on liquidity clusters of $115K and under $120K.
BTC Crypto Cap Dominance bounces back
With turnaround growth, Altcoin’s momentum showed signs of a struggle as Bitcoin began to regain control of its total crypto market capitalization.
Related: “The Alto Season is Here” – 5 Things You Need to Know About Bitcoin This Week
BTC’s advantage rose 0.5% on the day, nearly hitting 60%, and was built on existing comebacks.
Commenting on the interaction between Bitcoin and altcoin, trader and analyst Rekt Capital noted that Bitcoin still holds high altitudes.
“The Altcoin market is reacting as if Bitcoin had collapsed from its scope. But that’s not the case,” he said Wednesday.
“In fact, it’s retesting low highs and low ranges as support. Retesting is ongoing.”
Previously, Cointelegraph reported on capital turnover to ALT as BTC price momentum reversed to integration.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
