Highlights:
Bitcoin could maintain its bullish momentum if it recaptures $108,400 shortly, according to analysis.
As the weekly close approaches, volatility rises with $200 million in liquidations reported over the last 24 hours.
Altcoin futures reveal notable losses for traders since the last bear market low.
Bitcoin (BTC) hinted at increased volatility as it neared a crucial reclaim level leading up to Sunday’s weekly close.
Trader anticipates further BTC price shifts
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD reached local highs of $108,260.
After a challenging end to the TradFi trading week where Bitcoin dipped below $104,000, selling pressure seemed to ease as trader Daan Crypto Trades remarked on the approaching “interesting week.”
“The volatility is definitely high right now due to thin order books following this significant market flush,” he noted.
Examining liquidation statistics, Daan Crypto Trades forecasted continued volatility “for a time.”
“Order books are thin, particularly following the substantial liquidation event last week,” he added.
“This, combined with weekend price activity and many emotional traders, results in relatively volatile moves on lower timeframes.”
The latest data from CoinGlass indicated that total liquidations in the crypto market within the last 24 hours surpassed $200 million.
Both bid and ask liquidity strengthened around price levels on exchange order books just before the weekly close.
“Bitcoin is close to achieving a positive Weekly Close above $108381 to uphold the historical Weekly demand area (orange), even with downside wicks below it,” stated trader and analyst Rekt Capital while sharing the weekly chart on X.
Altcoin futures highlight negative crypto sentiment
The relief from potential downside was sufficient to boost crypto market sentiment from the “extreme fear” category, according to the Crypto Fear & Greed Index.
Related: Bitcoin price “aligns well” for a potential $95K drop next despite bullish RSI indicators
The Index registered 29/100 on Sunday, climbing seven points from recent six-month lows.
Crypto trader and analyst Luke Martin, host of the STACKS podcast, noted that altcoins were a significant factor in dragging down the overall market sentiment.
In an X post on Saturday, Martin shared a chart depicting the performance of Binance’s top 50 altcoin futures, created by Chris Jack, chief growth officer of algorithmic crypto trading firm Robuxio.
“This chart perfectly demonstrates why the sentiment remains bearish/exhausted despite $BTC staying above $100k,” he claimed.
“A collection of the top 50 altcoins is now trading BELOW their levels following the FTX crash in 2022.”
Martin referenced the collapse of crypto exchange FTX, which notably triggered a major market downturn and set the stage for crypto’s bear market bottom at the close of 2022.
This article does not offer investment advice or recommendations. Every investment and trading decision involves risk, and readers should perform their own research before proceeding.
