Key Takeaways:
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Bitcoin is experiencing an upward surge as the US stock market prepares to open, eyeing a potential $117,000 price point.
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There’s a concentration of buy orders (liquidity) just below the current market value, raising concerns about a possible dip to trigger liquidations of leveraged long positions.
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Gold continues to hit new record highs, and Bitcoin is now showing signs of potentially following a similar growth pattern.
Bitcoin (BTCUSD) approached the $117,000 mark on Wednesday, demonstrating continued bullish momentum and resistance to any significant downward correction.
Bitcoin’s Upward Trend Ignores Liquidity Concerns
According to data sourced from Cointelegraph Markets Pro and TradingView, Bitcoin reached a high of $116,593 on the Bitstamp exchange.
Following a 5.2% increase in September and a 6.3% rise in the third quarter, Bitcoin (
BTCUSD) has sparked predictions of new all-time highs in the near future.
Crypto analyst and entrepreneur Ted Pillows stated in a recent analysis on X that the next significant resistance level is around $117,500. He suggests that if Bitcoin can overcome this hurdle, it may rally toward a new all-time high.
Pillows highlighted notable areas of liquidity on exchange order books, acknowledging that these could potentially drive the price either down or up.
$BTC currently has two significant liquidity zones.
One is located around $107,000-$108,000, with approximately $8 billion in potential long liquidations.
The other sits around $118,000-$119,000, containing roughly $7 billion in short liquidations.
Which scenario do you foresee happening first? pic.twitter.com/8dBuyQMoUj
Prior to this, trading resource TheKingfisher cautioned about a possible market correction, citing significant liquidity build-up on the downside.
TheKingfisher stated in a post on X that massive long liquidations are forming just below the current price level, which could act as “fuel” to drive the price down to those zones, potentially flushing out a considerable amount of retail leverage.
As Cointelegraph has previously reported, order book liquidity frequently leads to “fakeouts” in the Bitcoin market, where large traders capitalize on other participants’ positions.
CoinGlass data reveals that short liquidations in the cryptocurrency market totaled $400 million in the past 24 hours at the time of reporting.
Gold Reaches Another All-Time High
Bitcoin’s recent surge in value coincides with gold also reaching a new all-time high.
The price of gold, which has been on a strong upward trend throughout the year, reached a new peak of $3,895 per ounce.
Bitcoin traders have been hoping for Bitcoin (BTCUSD) to mirror gold’s performance for quite some time. As previously reported by Cointelegraph, one recent analysis suggested that the current eight-week lag in Bitcoin following gold’s trajectory may soon come to an end.
Popular trader HTL-NL shared a chart indicating that the Bitcoin/Gold ratio is attempting to break through a key long-term resistance level.
Andre Dragosch, the European head of research at Bitwise, a crypto asset management firm, believes that gold’s rally may be nearing its end.
In an X post, Dragosch suggested that the rally might be “long in the tooth” due to “too much herding and group think” surrounding gold.
He concluded that this could potentially signal the start of a “risk-on” rally, with investors rotating into Bitcoin.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Trading and investing involve risk, and you should always conduct thorough research and consult with a financial professional before making any decisions.