Bitcoin’s Volatile Sunday Run, Likely Lead by Institutions, Could Lead BTC Price to New Record Highs

Bitcoin (BTC) enjoyed a weekly dose of volatility late Sunday and rose to around $ 107,000 before it was definitely back to $ 10,000.

The Krypto market usually experiences volatility on Sunday on Sunday, because it coincides with the opening of the Futures CME market, which takes a few moments to retaliate to lower markets with a lower 24/7 liquidity.

This weekend was a little different. While on the surface of the price action, a bearish rejection drops from a key level of resistance that Bitcoin has now failed to break in three attempts. In fact, BTC has increased the CME for the first time, suggesting that the price action was led by institutional traders in the US, unlike retail crypto.

Over the past few months, CME has often opened lower than it is closed on Friday, and has created a “gap” on a graph that did not occur this week. As the price expanded around this range of $ 5,000, thrust smoked liquidity on both sidesIt creates a somewhat key infection point.

Now the market depth up to $ 110,000 is minimal compared to limiting orders that line the book to $ 100,000. This means that any ascension is likely to remove this level and will see the Bitcoins store to a new record maximum.

It is worth considering the other side of the coin. It is also possible to imagine that the Sunday evening price event was a typical hunt for stopping losses, which includes traders focused on a zone where those who have short positions would like to leave, creating an impulse in buying pressure as short merchants who buy their position.

This strategy often takes place next to entering a larger short position. For example, if a trader wants to shorten a BTC with a risk tolerance of 4%, it would be advantageous to open this position to $ 107,000 with a stop loss to $ 111,280 compared to $ 105,000 with a stop of $ 109,200. Cutted traders can ensure this input by evaluating the levels of liquidity and pressing short positions to close, which temporarily raises the price to the ideal entry.

Either way, with liquidity, which is now relatively low around record heights, Bitcoin is one intelligence catalyst from the one expected upside down, and these potentially fresh short positions to $ 107,000 could provide ammunition to this possible outbreak.