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Bitcoin Faces $100K Pressure Amid Liquidity Games, Signs of Recovery

Bitcoin Nears $100,000 Support Amid Liquidity Shifts and Potential Bottoming Phase

  • Bitcoin faces pressure near $100,000 support amid ongoing liquidity movements.
  • Price attempts a higher low with relative strength index (RSI) showing slight improvement.
  • Large crypto long liquidations exceed $700 million in 24 hours.
  • Bitcoin is reportedly in a “bottoming phase” as speculative selling decreases.
  • Minimal forced selling suggests a possible foundation for the next price rally.

Bitcoin (BTC) again approached the $100,000 support level on Friday amid persistent fluctuations in liquidity. The price fell close to $99,000 around the Wall Street open, placing strain on bullish positions and long traders. This movement highlights ongoing market volatility as traders respond to changing conditions.

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Data from CoinGlass indicated that crypto long liquidations over the past 24 hours surpassed $700 million. This reflects significant pressure on leveraged positions. Large-volume traders appear to be engaging in what is described as a “liquidity herding game,” where bids and orders cluster around key price points to influence short-term price action. According to trading resource Material Indicators, $57 million in BTC bid liquidity was present near $99,000 as “plunge protection,” though there is skepticism about whether these bids will be executed, as mentioned on X (formerly Twitter) here.

On the technical side, the hourly BTC chart showed an attempt to form a higher low, while the relative strength index (RSI) bounced from the oversold 30/100 level. However, trader CRG noted on X here that the pair had yet to show convincing strength and could still move lower to clear remaining long positions.

Analysis of open interest highlighted potential signs of recovery, with commentary from Exitpump suggesting that despite recent control by short sellers, the price could be preparing for a bounce. Exitpump’s remarks and charts can be seen here.

Meanwhile, onchain data from analytics platform CryptoQuant supports the view that Bitcoin is in a “bottoming phase.” Contributor Sunny Mom detailed in a Quicktake blog post that speculative selling pressure is fading, with cumulative volume delta (CVD) on Bitcoin futures reflecting this shift. Spot CVD remains slightly bearish, but a reduction in forced selling points to easing market stress. According to CryptoQuant, this phase may only require positive triggers to ignite a new rally.

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This information indicates a period of consolidation and decreased selling momentum for Bitcoin near critical support levels.

This article contains factual information and does not provide investment advice. Please conduct your own research prior to making trading decisions.

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