Bitcoin Cools Down Over the Weekend, But the Liquidity Hunt May Just Be Starting
Bitcoin seems to have actually created a local peak right at the moment the screenshot was posted and the take-profit order was executed.
After a tumultuous series of fluctuations with billions of USD being liquidated, the market this weekend has returned to a quieter state, at least on the surface. But this calm does not necessarily mean that the risks have disappeared.
The noteworthy point is that leverage has not yet left the market. On the contrary, new speculators are still jumping into both sides, opening long and short positions as if the recent volatility was just a warm-up.
This makes the current structure feel very familiar: liquidity is accumulating on both the upper and lower sides, and the market will sooner or later have to choose a direction to sweep.
Currently, the area around 65,000 USD is concentrating several hundred million USD in long liquidations, while above the 72,000 USD zone, there are several billion USD in short liquidations waiting to be triggered.
This is a typical situation when the price is caught between two large liquidity clusters, while the majority is trying to guess which side will be targeted first.
The important question right now is not whether the market will move anymore, but whether that movement will sweep down to 65,000 USD first to clear out weak long positions, or will it pull back up to 72,000 USD to pressure shorts before establishing the next direction. The weekend is calm, but it may not be safe.
#BTC
