Bitcoin saw fresh volatility at the March 27 Wall Street open as analysts said that short liquidations were now long overdue.
Bitcoin takes sell-side liquidity before fresh dip
Data from Cointelegraph Markets Pro and TradingView tracked BTC price action as it hit its highest levels in nearly two weeks — $71,754 on Bitstamp.
A sudden correction then saw BTC/USD drop $1,300 in minutes, going on to total more than 4% as bulls fought to flip the key $69,000 zone to support.
The latest data covering flows for the United States spot Bitcoin exchange-traded funds (ETFs) remained encouraging.
After net inflows of more than $400 million the day prior, Wall Street trading began with a modest 1,300 BTC ($91 million) outflow from the Grayscale Bitcoin Trust (GBTC).
The figures, from crypto intelligence firm Arkham, were uploaded to X (formerly Twitter) by popular trader Daan Crypto Trades.
“We’re indeed seeing some high volatility as well,” he added in a further post, noting that the local highs had filled a large wall of BTC sell orders.
Liquidating short BTC positions was now a key topic of discussion for market observers. The latest data from on-chain monitoring resource CoinGlass showed bids thickening around $69,000 — a potential safety net should the market reverse.
Further out, fellow trader CrypNuevo hoped for an attack on the final band of shorts around recent all-time highs at $74,000.
“Mid term: Liquidity at both sides but more likely to go for the upside liquidations at $74.1k because they’re closer from current price,” he reasoned in part of an X post.
$69,000 remains key point on the BTC price map
With $68,500 coming back into play at the time of writing, popular trader Crypto Ed was among those calling for calm.
Related: Bitcoin ‘sell-side liquidity crisis’ sees BTC move for the first time since 2010
That price, he said in his latest YouTube video released on the day, would form a potentially suitable long entry and would not constitute a major corrective move.
“Not really sure if this next move is really a big one — $73,000 maybe,” he suggested about where BTC/USD could go thereafter.
A further correction could then set in before attacking the all-time highs.
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.
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