Bitcoin Traders Hope for Highs as BTC Coils Beneath Liquidity

Key points:

• Bitcoin revisits $113,000 before Tuesday’s Wall Street open amid talk of a new gold copycat move.

• That level becomes a recommendation for long entries, but not everyone is bullish.

• Liquidity conditions show a $115,000 short squeeze in the making.

Bitcoin (BTC) returned to $113,000 on Tuesday as traders’ BTC price perspectives began to change.

BTC price rebound lacks “strong spot demand”

Data from Cointelegraph Markets Pro and TradingView showed new local highs of $113,279 into the Wall Street open.

BTC/USD built on a higher low from the weekend, which preserved $110,000 as support.

Now, market participants saw the potential for bulls to make a more sustained assault on overhead resistance.

“There we go,” crypto trader, analyst and entrepreneur Michaël van de Poppe wrote in a response on X.

Van de Poppe noted that Bitcoin had reclaimed the 20-day simple moving average (SMA) near $111,500, and had also won back the key $112,000 mark.

“Gold is printing strong new ATHs –> $BTC likely following,” he continued, referencing Bitcoin’s habit of following breakouts on XAU/USD with a slight delay.

Fellow trader Crypto Tony, meanwhile, described $113,000 as a suitable entry point.

“Above $113,000 is a long position on the daily,” he confirmed to X followers.

Others were cautious, among them crypto investor and entrepreneur Ted Pillows, who flagged a lack of spot-market interest as a reason to doubt the sustainability of the current local uptrend.

Bitcoin liquidity flush “always a possibility”

Meanwhile, a look at crypto exchange order-book liquidity shows a thick line of asks immediately above the price, extending to $114,500.

Related: BTC dip predictions fall below $90K: 5 things to know in Bitcoin this week

This caught the attention of some traders, who suspected that the resistance patch might be a deliberate ploy to influence price trajectory.

“$BTC is knocking on the door of a high-leverage short position zone,” crypto investor and data analyst CW commented.

Overnight, trading resource Material Indicators forecast that the zone below $115,000 may provide “some friction” for the Bitcoin bulls.

Despite this, it argued, macroeconomic tailwinds — specifically in the form of the US Federal Reserve cutting interest rates next week — should provide a “return to the highs.”

“Don’t let that fool you into thinking that there can’t be another flush to support because that’s ALWAYS a possibility,” it cautioned.

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.