Highlights:
Bitcoin could maintain the bullish market momentum if it rebounds above $108,400 shortly, according to analysts.
Increased volatility is noted as the week concludes, with $200 million in liquidations occurring over a 24-hour period due to thin order books.
Altcoin futures illustrate the significant losses traders have faced since the previous bear market’s lowest point.
Bitcoin (BTC) hinted at volatility as it approached a crucial reclaim level ahead of Sunday’s weekly close.
Traders anticipate more BTC price fluctuations
Data from Cointelegraph Markets Pro and TradingView recorded BTC/USD reaching local highs of $108,260.
Following a challenging week in traditional finance that saw Bitcoin fall below $104,000, selling pressure seemed to ease ahead of what trader Daan Crypto Trades described as an “interesting week.”
“Volatility is certainly high here due to thin books following the significant market flush,” he noted.
Analyzing liquidation data, Daan Crypto Trades predicted ongoing volatility “for a while.”
“Books are thin. Especially after last week’s major liquidation event,” he added.
“This, combined with weekend price movements and a plethora of emotional traders, leads to relatively volatile actions on lower timeframes.”
Recent data from monitoring platform CoinGlass indicated total crypto liquidations exceeding $200 million in the 24 hours leading up to this report.
Both bid and ask liquidity became denser on exchange order books as the weekly close approached.
“Bitcoin is close to achieving a positive Weekly Close above $108,381, which would maintain the historical Weekly demand area (orange), despite the downside wicks below it,” said trader and analyst Rekt Capital, sharing the weekly chart on X.
Altcoin futures shed light on negative crypto sentiment
The relief from further declines was sufficient to elevate crypto market sentiment from the “extreme fear” territory, according to data from the Crypto Fear & Greed Index.
Related: Bitcoin price poised for a $95K drop next despite bullish RSI metrics
The Index reported 29/100 on Sunday, a seven-point increase from six-month lows recorded just days prior.
Commenting on the market, crypto trader and analyst Luke Martin, host of the STACKS podcast, pointed out that altcoins are significantly weighing down overall market sentiment.
In an X post on Saturday, Martin shared a chart illustrating the performance of Binance’s top 50 altcoin futures. This chart was produced by Chris Jack, chief growth officer of algorithmic crypto trading firm Robuxio.
“This chart exemplifies why sentiment is bearish/tired even with $BTC still above $100k,” he explained.
“A collection of the top 50 altcoins is now trading BELOW levels seen after the FTX crash in 2022.”
Martin referenced the collapse of crypto exchange FTX, which notably triggered a significant market downturn and set the stage for the bear market’s low point at the end of 2022.
This article does not constitute investment advice or recommendations. Investing and trading involve risks, and readers should conduct their own research before making any decisions.
