Key points:
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Bitcoin can keep the bull market range in play if it reclaims $108,400 in the coming hours, according to an analysis.
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Volatility increases in the weekly close as reduced order books see $200 million in 24-hour liquidations.
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Altcoin futures show how traders have lost since the last bear market bottom.
Bitcoin (BTC) sparked volatility at Sunday’s weekly close as the price approached a key recovery level.
Trader sees more BTC price volatility to come
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hitting local highs of $108,260.
After a painful end to the TradFi trading week that saw Bitcoin fall below the $104,000 mark, selling pressure appeared to cool ahead of what trader X Daan Crypto Trades called an “interesting week.”
“Volatility is definitely high here due to book shortages following this huge market flow,” he wrote.
Looking at the settlement data, Daan Crypto Trades predicted that volatility would continue “for a while.”
“Books are in short supply, especially after last week’s sell-off,” he added.
“This, combined with the weekend price action and a large number of emotional traders, makes for relatively volatile moves on short time frames.”
The latest figures from monitoring resource CoinGlass put total 24-hour cryptocurrency liquidations at the time of writing at over $200 million.
Both bid and ask liquidity increased around the price on the exchange order books hours before the weekly close.
“Bitcoin is not far from securing a positive weekly close above $108381 to preserve the historical weekly demand area (orange), despite the downsides below it,” said trader and analyst Rekt Capital while raising the weekly chart to X.
Altcoin futures explain gloomy crypto sentiment
The alleviation of new downsides was enough to lift cryptocurrency market sentiment out of the “extreme fear” zone, according to data from the Crypto Fear & Greed Index.
Related: Bitcoin Price ‘Lines Up Very Well’ for Next Dip to $95,000 Despite Bullish RSI Data
The index measured 29/100 on Sunday, seven points higher than the six-month lows seen days earlier.
Commenting, cryptocurrency trader and analyst Luke Martin, host of the STACKS podcast, noted that altcoins are a major drag on the overall market mood.
In an X post on Saturday, Martin uploaded a chart showing the performance of the top 50 Binance altcoin futures. The chart was created by Chris Jack, chief growth officer at cryptocurrency algorithmic trading company Robuxio.
“This chart perfectly illustrates why sentiment is bearish/tired even though $BTC is still above $100,000,” he argued.
“A basket of the top 50 altcoins are now trading BELOW where they were after the FTX crash in 2022.”
Martin was referring to the implosion of the FTX cryptocurrency exchange, which triggered a major market crash and set up cryptocurrencies for their bear market bottom in late 2022.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
