Key Points
- Bitcoin’s recent volatility has led to potential targets on the chart that may be revisited soon.
- The upcoming Monday’s trading could set the tone for the week in the crypto markets.
Bitcoin [BTC] is currently experiencing a downtrend on the higher timeframe charts. The volatility that occurred in the first half of August has created potential targets on the chart that the price is likely to revisit in the near future. Since the highs made on 25 August, Bitcoin has fallen by 10.6% on the charts. However, a price drop below $60k could trigger a short-term reversal.
Monday’s Significance in Crypto Markets
Mondays hold significant importance in traditional markets, and the high and low made on this day could set the tone for the coming week of trading. This is equally important in the crypto markets. Crypto analysts have noted interesting liquidity targets for BTC over the next 24-48 hours. To the south, the $56.3k region, where the price left a large wick on 15 August, could be an attractive target in the coming days.
Attempts to push the price below $58k have not materialized, which could indicate that the market maker is building a position. This suggests that we could expect a price move upwards to hunt the liquidity that has been built in the short term, especially as market participants expect an extended move south. This upward liquidity run could present a tradable opportunity.
Possibility of a Short Squeeze
Short-term liquidation levels have been found to cluster around the $57.1k and $61.3k region. Given the market price’s proximity to $57.1k, participants expect a move south. However, this expectation has built liquidity overhead. The cumulative liquidation levels delta is highly negative, showing that short liquidations outweigh the long ones. This could result in prices shooting higher in search of liquidity and balancing the Futures market’s expectations.
The liquidity levels have a notable cluster at $59.9k and $61.7k, marking these as short-term targets. Traders going long before Monday would need to be brave in the face of volatility to earn profits. The Bitcoin Profit Calculator can be a useful tool to check if your portfolio is green.
