- An attempted price action below $58,000 could trigger a counter-move
- BTC’s movement between Monday and Tuesday could be key to crypto’s next move
Bitcoin [BTC]at the time of writing, was in a downtrend on the higher timeframe charts. The volatility the price saw in the first half of August has left targets on the chart that the price would likely revisit soon.
Since the highs of August 25, Bitcoin has fallen 10.6% on the charts. However, the price drop below $60,000 could signal a near-term turnaround. What should traders expect for the upcoming trading week?
Monday’s dreaded volatility could be full of opportunity
Mondays are of great importance in traditional markets and the day’s highs and lows could set the tone for the trading week ahead. It is important for the crypto markets for similar reasons.
Crypto analyst CrypNuevo observed in a message on X that there were interesting liquidity targets for BTC over the next 24 to 48 hours. To the south, the $56.3k region, where the price left a big fuse on August 15, could be an attractive target in the coming days.
He noted that attempted price increases below $58,000 have not materialized and that this is likely an indication that the market maker is building a position.
What this means is that we can expect a price increase to chase the liquidity that has built up in the short term. Especially because market participants expect a longer move south. This upside increase in liquidity could provide a tradable opportunity.
What are the chances of a short squeeze?
AMBCrypto found that near-term liquidation levels were clustered around the $57.1k and $61.3k region. Given the closeness of the market price to $57.1k, participants expect a move south.
However, as discussed earlier, this expectation has led to a liquidity overhead.
The cumulative delta of the liquidation levels was very negative and showed that the short liquidations outweighed the long ones. This could allow prices to rise in search of liquidity and rebalance futures market expectations.
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Liquidity levels showed a notable cluster at $59.9k and $61.7k, marking these as short-term targets. Traders who are active long before Monday must be brave in the face of volatility to make a profit.
