Essential Highlights:
Analysts indicate that Bitcoin can sustain its bullish trend if it recaptures $108,400 shortly.
As the week approaches its end, heightened volatility is seen with $200 million in liquidations within 24 hours due to thin order books.
Futures on altcoins illustrate how traders have suffered losses since the previous bear market’s low point.
Bitcoin (BTC) hinted at volatility as it neared a significant reclaim level ahead of Sunday’s weekly close.
Anticipating Further BTC Price Fluctuations
Data from Cointelegraph Markets Pro and TradingView indicated BTC/USD reaching local highs of $108,260.
Following a challenging end to the traditional finance trading week, which saw Bitcoin drop below $104,000, sell-side pressure appeared to ease ahead of what trader X Daan Crypto Trades described as an “interesting week.”
“Volatility is certainly high here because of the thin order books following this significant market flush,” he noted.
Referring to liquidation data, Daan Crypto Trades predicted ongoing volatility “for a while.”
“Books are thin, especially after the extensive liquidation event last week,” he added.
“This, combined with weekend price dynamics and emotional traders, results in relatively volatile movements on lower timeframes.”
The latest data from monitoring resource CoinGlass indicated that total crypto liquidations in the 24 hours leading to this report exceeded $200 million.
Both bid and ask liquidity thickened around the price on exchange order books just before the weekly close.
“Bitcoin is close to achieving a positive Weekly Close above $108,381 to maintain the historical Weekly demand area (orange), despite the downward wicks below it,” trader and analyst Rekt Capital mentioned while sharing the weekly chart on X.
Altcoin Futures Highlight Negative Crypto Sentiment
The relief from further drops was sufficient to elevate crypto market sentiment from the “extreme fear” level, based on data from the Crypto Fear & Greed Index.
Related: Bitcoin price appears positioned for a $95K decline despite bullish RSI data
The Index recorded a score of 29/100 Sunday, increasing by seven points from six-month lows observed just days earlier.
Crypto trader and analyst Luke Martin, the host of the STACKS podcast, pointed out that the weakness in altcoins has significantly impacted overall market sentiment.
In an X post on Saturday, Martin shared a chart illustrating the performance of Binance’s top 50 altcoin futures, created by Chris Jack, chief growth officer at algorithmic crypto trading firm Robuxio.
“This chart perfectly depicts why the sentiment is bearish/tainted even with $BTC still above $100k,” he asserted.
“A collection of the top 50 altcoins is now trading BELOW their post-FTX collapse levels from 2022.”
Martin referred to the downfall of the FTX exchange, which notorious for triggering a significant market downturn and setting the stage for the bear market’s low point at the end of 2022.
This article does not constitute investment advice or recommendations. All investments and trading activities carry risks, and readers should perform their own research before making any decisions.
