Key points:
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Bitcoin order book liquidity is increasing as BTC price consolidates its recent relief bounce.
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Market participants see a liquidity grab taking BTC/USD as high as $111,000 next.
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The monthly close is already in focus as Bitcoin ekes out modest gains for June.
Bitcoin (BTC) traders risk fresh losses thanks to whipsaw BTC price action next, analysis warns.
The latest exchange order book data from monitoring resource CoinGlass shows prime conditions for a new round of “liquidity grabs” up to $111,000.
Liquidity sets up BTC price showdown
Bitcoin continues to hold the $105,000 mark after a brisk rebound from multi-week lows, thanks to a Middle East ceasefire.
With BTC price action consolidating, however, liquidity on either side of the spot price is growing, and this usually results in a snap move to neutralize it, an event often called a liquidity “grab.”
“I wouldn’t be surprised to see $BTC push a little higher into the 107K’s before pulling back and taking the liquidity below 105-104K with a quick wick,” trader and analyst Mark Cullen told X followers on Wednesday.
Cullen uploaded CoinGlass liquidity data, which tracks key price levels at which liquidation events should occur.
At the time of writing, $108,000 was also becoming a target thanks to liquidity being replenished closer to all-time highs.
Zooming out, fellow trader Jelle noted that upside liquidity — especially around current all-time highs — had become more significant relative to that sitting below price, increasing the odds of a move higher.
“$111,000 looks eager to be tagged next,” he suggested in commenting on CoinGlass data.
Trader Skew flagged $103,000 as a “pivotal” level should a downside liquidity grab come.
“Currently market is pretty neutral in terms of positioning, longs opening targeting higher & shorts opening here as hedges,” his latest X analysis explained.
“The more liquidity that gets attracted here = greater the reaction.”
Analyst flags key BTC price monthly close level
Liquidity conditions are eyeing volatility ahead of key US macroeconomic data and the monthly candle close.
Related: Bitcoin ETFs log biggest June inflows at $588M, extend 11-day streak
As Cointelegraph reported, Friday will see the release of the Federal Reserve’s “preferred” inflation gauge amid signs that officials are open to an interest-rate cut next month.
With BTC/USD overall up 1.7% in June, the exact monthly close level will be telling, trader and analyst Rekt Capital said.
“A Monthly Close above ~$102400 (blue) would confirm the Monthly Range breakout,” he wrote on X alongside an explanatory chart on Tuesday.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
