Key points:
- •Bitcoin price action stays lower after falling over 4% in hours.
- •Liquidity is already recovering, with short-term volatility increasingly likely as a result.
- •BTC price predictions see a local bottom forming at as low as $114,000.
Bitcoin (BTC) struggled to reclaim $122,000 Wednesday as exchange users bet on fresh BTC price volatility.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD consolidating after a snap 4.2% correction the day prior.
This had been broadly expected given successive all-time highs but an absence of serious upward momentum.
As Cointelegraph reported, rapidly increasing open interest (OI) on derivatives markets had added to suspicions that Bitcoin could retrace a chunk of its recent upside.
“Very efficient price action tbh hence the low volatility thus far,” popular trader Skew commented in part of an X post Tuesday as the correction took shape.
Skew subsequently noted “predatory” behavior by large-volume traders on exchange order books.
Clear PvP -> Predatory price action on-going here via binance market on $BTC
spoofing on the ask aka above price on spot
spoofing on the bid aka below price on perps
How the predatory strategy works?
Aim is to temporarily hold or lift price via perps & then push market lower by…
Overnight, however, liquidity began to flow back into the market, with data from CoinGlass showing thickening bid-side and ask-side liquidity at the time of writing.
Skew suggested that a “consolidation range” may result.
BTC price support puts $114,000 back in focus
Others considered where BTC/USD could put in a reliable local floor, warning that this may be significantly below current spot price.
Related: BTC October price breakout odds low: 5 things to know in Bitcoin this week
“Between $121K–$120K there isn’t much support, which means price can cut through quickly if selling picks up,” popular trader ZYN reported on X
“But just below, around $117K, nearly 190K BTC were last bought. That’s a heavy cluster of recent buyers.”
ZYN used the cost basis of recent buyers to predict where demand should shore up price.
“If we get a pullback into that range, it’s the kind of zone where demand usually shows up strong buyers defending their entries, new capital stepping in. In short: weak cushion at $121K, but a very real floor forming at $117K,” he concluded.
Using its proprietary trading signals, trading resource Material Indicators also flagged $120,000 support, but said that a stronger foundation for a bounce lay at $114,000 — near to Bitcoin’s 50-day simple moving average (SMA).
For crypto trader, analyst and entrepreneur Michaël van de Poppe, the next buy zone extended down to $118,000.
“Bitcoin made a new all-time high, which is often a reference for people to be taking profits,” he reasoned.
“Slight pullback and we're approaching my personal area of interest for potential dip buying.”
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.