Bitcoin liquidations disappear as trader hopes $30,000 will hit before dip
Bitcoin (BTC) drifted lower on March 25 as eerily calm conditions saw liquidations evaporate.
Bitcoin in “slow chop” until Monday
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it focused on $27,500 at the time of writing.
After losing $28,000 the previous day, weekend trading offered little of its usual volatility as traders hoped for a break before resuming the TradFi markets.
“Looks like a slow bit around the CME closing price so far,” Daan Crypto Trades wrote in part of the Twitter commentary.
“Don’t expect too much to happen to BTC over the weekend after last week’s volatility.”
Daan Crypto Trades referred to the closing price of the CME Group Bitcoin futures markets, a level that could become significant in case volatility up or down appears before the start of the new week.
Related: BTC price centers around $28K as Deutsche Bank shares follow Credit Suisse
This would have the effect of producing a “gap” in futures market open and close prices, creating a potential target for spot BTC.
An additional post demarcated areas of order book liquidity, which can also act as support and resistance flip levels.
These #Bitcoin charts may look messy, but it can be useful to highlight potential liquidity areas where stop losses may be placed.
Breaking these levels can lead to a small cascade into the next area.
We saw that on the way down already. pic.twitter.com/jM2LGrXnKj
— Daan Crypto Trades (@DaanCrypto) March 25, 2023
Fellow trader Crypto Tony, conversely, hoped that bulls could muster the strength for an attack at $30,000 before a deeper retracement.
“Another lift for declining volume up to $30,000, please,” he tweeted next to a projection diagram.
“I expect a solid rejection from this area. With everything going on, going through with one test seems very unlikely.”
Liquidations disappear
Liquidation data, meanwhile, showed the extent of the reduction in short-term volatility, with short and long liquidations for March 25 totaling less than $5 million.
Related: Justin Sun vs. SEC, Do Kwon Arrested, 180 Million Players Press Polygon: Asia Express
In contrast, March 22 saw Bitcoin liquidate over $120 million in positions, according to statistics from Coinglass.
Analyzing traders’ sentiment, trading suite Decentrader saw what it described as a “fairly simple” increase in the long/short ratio, with the spot price declining.
Quite simple.#Bitcoin Long Short ratio continued up.
The price continued to decline. pic.twitter.com/OndWvLLgbK
— Decenter (@decenter) March 25, 2023
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
