BTC price strength starts to convince traders that new highs are back on the table, but Bitcoin still needs spot-market support.
Market Update
Key points:
-
Bitcoin revisits $113,000 before Tuesday’s Wall Street open amid talk of a new gold copycat move.
-
That level becomes a recommendation for long entries, but not everyone is bullish.
-
Liquidity conditions show a $115,000 short squeeze in the making.
Bitcoin () returned to $113,000 on Tuesday as traders’ BTC price perspectives began to change.
BTC price rebound lacks “strong spot demand”
Data from and showed new local highs of $113,279 into the Wall Street open.
BTC/USD built on a higher low from the weekend, which .
Now, market participants saw the potential for bulls to make a more sustained assault on overhead resistance.
“There we go,” crypto trader, analyst and entrepreneur Michaël van de Poppe wrote in a on X.
Van de Poppe noted that Bitcoin had reclaimed the 20-day simple moving average (SMA) near $111,500, and had also won back the key $112,000 mark.
“Gold is printing strong new ATHs –> $BTC likely following,” he continued, referencing Bitcoin’s habit of with a slight delay.
Fellow trader Crypto Tony, meanwhile, described $113,000 as a suitable entry point.
“Above $113,000 is a long position on the daily,” he to X followers.
Others were cautious, among them crypto investor and entrepreneur Ted Pillows, who flagged a lack of spot-market interest as a reason to doubt the sustainability of the current local uptrend.
current rally is mostly perps driven.
OI is up, and the funding rate is up, while the Coinbase premium is still neutral.
Until strong spot demand arrives, the rally won’t be sustainable.
— Ted (@TedPillows)
Bitcoin liquidity flush “always a possibility”
Meanwhile, a look at crypto exchange order-book liquidity shows a immediately above the price, extending to $114,500.
Related:
This caught the attention of some traders, who suspected that the resistance patch might be a deliberate ploy to influence price trajectory.
What the heck is this?
— Crypto Seth (@seth_fin)
“$BTC is knocking on the door of a high-leverage short position zone,” crypto investor and data analyst CW .
Overnight, trading resource Material Indicators that the zone below $115,000 may provide “some friction” for the Bitcoin bulls.
Despite this, it argued, macroeconomic tailwinds — specifically in the form of the US Federal Reserve cutting interest rates next week — should provide a “return to the highs.”
“Don’t let that fool you into thinking that there can’t be another flush to support because that’s ALWAYS a possibility,” it cautioned.
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.
