Bitcoin Experiences Volatility, Dropping from $107,000 to $102,000
Bitcoin (BTC) experienced significant volatility on Sunday, rising to approximately $107,000 before dropping back to $102,000. This fluctuation coincided with the opening of the CME futures market, which often leads to increased price movement.
- Price action resulted in a bearish rejection at a resistance level that BTC has failed to break through three times.
- The CME opened higher than its previous close, unlike past weeks where gaps were created.
- The volatility wiped out liquidity on both sides, creating a critical inflection point.
- Market depth indicates minimal resistance up to $110,000, suggesting potential for reaching new highs.
- Conversely, the price action may have been a stop-loss hunt, targeting traders in short positions.
- Traders might aim to establish short positions at $107,000, assessing liquidity to optimize their entries.
With low liquidity near record highs, Bitcoin is positioned for a potential upward movement influenced by upcoming news catalysts.