Bitcoin fielded new predictions of a short squeeze as price kept up pressure on key resistance at $88,000, while US stocks went higher.
Market Update
Bitcoin () hovered near $87,000 at the Wednesday Wall Street open as analysts eyed short liquidations.
Key points:
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Bitcoin liquidity conditions analysis predicts a return toward $90,000 next.
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Range-bound short-term price moves see trader bets pile in either direction.
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US macro data gives stocks a modest boost but fails to sway crypto.
Liquidity could see BTC “pulled up” toward $89,000
Data from and showed flat BTC price action characterizing the day’s trading.
A lack of volatility allowed liquidity to build either side of price, with $88,000 now an area of interest for trading resource TheKingfisher.
“There are a lot of short liquidations for $BTC on Binance around $88,253.90, which means the price could get pulled up towards that level,” it explained in a .
Crypto investor and entrepreneur Ted Pillows flagged $89,000 as the key reclaim level for shorts to feel the pain.
“If BTC reclaims the $89,000 level, upside liquidity will be swept first. If Bitcoin loses the $85,000 level, the downside liquidity will be taken out before a bounce back,” he X followers the day prior.
Data from monitoring resource put the major liquidity draws at $84,500 and $88,500 at the time of writing.
Crypto analyst Lennaert Snyder that the long/short ratio among traders was “roughly 50/50” into $89,000 resistance.
“We need Bitcoin to eat some stop losses and grab fuel before the next directional move,” he commented.
“Two scenario’s I like is either we gain $89K, or sweep the $80.6K lows and bounce back.”
Bitcoin steady as S&P 500 heads higher
The day’s macroeconomic data prints had little impact on the stubborn BTC price action.
Related:
US jobless claims came in below expectations, potentially reflecting strengthening labor-market conditions.
Despite this, stocks climbed after the open, while bets of a Federal Reserve interest-rate cut in December remained favorable to risk assets.
CME Group’s put the odds of a 0.25% cut at the Fed’s Dec. 10 meeting at 83% at the time of writing — up considerably from 30% just a week prior.
While acknowledging rising fear levels, trading resource The Kobeissi Letter that the S&P 500 was now just 2% away from fresh all-time highs.
“Asset owners are winning,” it concluded.
Investor fear levels are rising:
The cost of a 5-year put option protecting against at least a -55% drop in the S&P 500 has risen to 46 basis points, the highest since the April sell-off.
Excluding April, this is the highest level in at least 2 years.
This means investors are…
— The Kobeissi Letter (@KobeissiLetter)
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.
