Bitcoin: Can liquidity hunt drive BTC to $36K?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- A massive price imbalance existed between $30.2k and $32.8k on the daily chart.
- At press time, open and current liquidity existed at $35.6k and $35.9k.
Bitcoin [BTC] hit a new 2023 high of $35.2k after BlackRock recorded progress on its spot BTC ETF (Exchange Traded Fund). But the report on the progress was quickly dispelled as BTC’s rally cooled off to $34k at press time.
Can Bitcoin extend the recovery
On the charts, specifically the daily timeframe, price imbalance and liquidity existed in the white area of $30.2k – $32.8k.
A Fibonacci retracement tool was plotted between September’s low of $24.9k and recent high of $35.2k. Based on the tool, the liquidity on charts stretched between 50% and 23.6% Fib levels.
In addition, the 50-EMA (Exponential Moving Average) aligned with the 38.2% Fib level. It could make the white area a bullish zone. A solid rebound in the area could set BTC to aim for $35.2k or the bearish OB of $37k-40k (red) formed on 4 May 2022.
The positive readings of the RSI and CMF indicated that the king coin enjoyed massive buying pressure and capital inflows in the past few days.
More liquidation zones at $35.6 and $35.9k
BTC’s market bias was bearish, as shown by the positive CLLD (Cumulative Liquidation Levels Delta). CLLD tracks the difference between open long and short liquidations over time. The positive (green) readings indicated that more long liquidations were recorded – A bearish bias.
How much are 1,10,100 BTCs worth today?
On the Liquidation Profile, major and current liquidation zones (larger bubbles) existed at $35.9k, $35.6k and $34.4k (blue lines on the higher side).
It meant that open liquidity existed at these levels. So BTC could see strong price reactions at these levels before a retracement towards the price imbalance on charts at $32.8k – $30.2k.