Originally published on: November 21, 2024
Bitcoin shocked traders on Nov. 21 with rapid gains, pushing the BTC price close to $100,000 due to a liquidity squeeze.
The BTC/USD 1-hour chart revealed a sudden surge, nearing the much-anticipated six-figure mark, as reported by Cointelegraph Markets Pro and TradingView data.
Trader Skew described this move as a “pop” into final ask liquidity, hinting at the potential breakthrough of the $100,000 BTC price barrier. Currently up by almost 3% for the day, BTC/USD is just a hair’s breadth away from a historic milestone.
Skew suggested that this level could be a critical point for sellers to make a move, especially since the market theory supports preempting the $100K ask liquidity.
Another notable observation was the emergence of new ask liquidity above $100,000 on exchange order books, indicating a shift in market sentiment towards higher price levels.
The significance of reaching $100,000 has not gone unnoticed, with Bitcoin rallying by 38% in just three weeks, surprising even seasoned observers.
Charles Edwards, the founder of Capriole Investments, noted that surpassing $100K was challenging for the average investor to grasp, highlighting Bitcoin’s meteoric rise.
While short BTC liquidations totaled over $92 million in a 24-hour period, experts cautioned against expecting a support retest to validate market strength at elevated levels.
Material Indicators’ latest analysis on X proposed that revisiting the low $90,000 range could offer a solid buffer zone for the market.
Examining the BTC/USDT order book on Binance, the lack of buy-side liquidity below the price raised concerns about sellers gaining control on shorter timeframes.
With ask liquidity concentrated between $98,000 and $100,000 and thin bid liquidity below, traders are closely watching market dynamics for potential shifts.
Disclaimer: This article does not provide investment advice. Readers are urged to perform their own research before making any trading decisions.
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