Important points:
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According to the analysis, if Bitcoin regains $108,400 in the next few hours, it can sustain the bullish range.
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Volatility will increase towards the end of the week as thin orders of $200 million are expected with 24-hour clearing.
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Altcoin futures show how traders are losing money since the bottom of the last bear market.
Bitcoin (BTC) increased volatility heading into the week’s close on Sunday as the price approaches a key recovery level.
Traders expect further BTC price volatility
BTC/USD reached a local high of $108,260, according to data from Cointelegraph Markets Pro and TradingView.
After a disappointing end to the TradFi trading week with Bitcoin dipping below $104,000, seller pressure appears to have eased ahead of what Xtrader Daan Crypto Trades called an “interesting week.”
“Volatility is definitely high here as stocks are thin after this massive market flush,” he wrote.
Looking at liquidation data, Daan Crypto Trades predicted volatility would continue “for some time.”
“The books are thin, especially after last week’s major liquidation event,” he added.
“This, combined with weekend price action and emotional traders, has resulted in relatively volatile movement on short time frames.”
According to the latest figures from monitoring resource CoinGlass, the total amount of cryptocurrency liquidations in the 24 hours up to the time of writing is more than $200 million.
Hours before the week’s close, both buy and sell liquidity was thick around exchange order book prices.
“Bitcoin is not far from securing a positive weekly close above $108,381 to maintain its historical weekly demand area (orange). Even below that, there is a downside,” said trader and analyst Recto Capital while uploading weekly charts on X.
Altcoin Futures Explain Tough Sentiment in Crypto Market
The reprieve from further declines was enough to lift crypto market sentiment out of the “extreme fear” zone, according to data from the Crypto Fear & Greed Index.
Related: Bitcoin price “on track” for next $95,000 drop despite bullish RSI data
The index stood at 29/100 on Sunday, up 7 points from its six-month low hit a few days earlier.
Luke Martin, host of the STACKS podcast and crypto trader and analyst, pointed out that altcoins are having a big impact on the overall mood of the market.
In Saturday’s X-Post, Martin uploaded a chart showing the performance of Binance’s top 50 altcoin futures. This chart was created by Chris Jack, Chief Growth Officer at Robuxio, an algorithmic cryptocurrency trading company.
“This chart perfectly illustrates why sentiment is bearish/tired even though BTC is still above $100,000,” he claimed.
“A basket of top 50 altcoins is currently trading at post-2022 FTX crash prices.”
Martin was referring to the implosion of crypto exchange FTX, which infamously caused a massive market decline and prepared cryptocurrencies for a bear market bottom at the end of 2022.
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 decisions.