Bitcoin Targets New Weekly Close Above $108,300 Amid Volatility
Key Insights
- Bitcoin Recovery: Analysts suggest Bitcoin can sustain its bullish momentum if it surpasses $108,400 soon.
- Market Volatility: Increased volatility is observed as $200 million gets liquidated in 24 hours due to thin order books.
- Altcoin Impact: Altcoin futures reveal significant trader losses since the last bear market bottom.
Bitcoin's Volatile Path Forward
Bitcoin (BTC) is approaching a critical level for its weekly close, aiming to surpass $108,300 to maintain bullish prospects. Data from Cointelegraph Markets Pro and TradingView shows BTC/USD reaching $108,260. The cryptocurrency experienced downward pressure after a challenging end to the TradFi trading week, dipping below $104,000. However, sell-side pressure eased, setting the stage for a potentially interesting week, according to trader Daan Crypto Trades.
Volatility remains high due to thin order books following a massive market flush, with predictions indicating this trend will persist. Daan Crypto Trades notes, "Books are thin, especially after the massive liquidation event last week." The combination of weekend trading and emotional traders contributes to volatile moves on shorter timeframes.
Market Sentiment and Altcoin Futures
The relief from further declines has slightly improved crypto market sentiment, lifting it out of the "extreme fear" zone. The Crypto Fear & Greed Index recorded a score of 29/100, an increase from recent lows. However, altcoins remain a drag on the overall market mood. Analyst Luke Martin highlights the underperformance of Binance's top 50 altcoin futures, emphasizing their decline below post-FTX crash levels in 2022. This scenario underscores why sentiment remains bearish despite Bitcoin holding above $100,000.
This article does not offer investment advice. All trading involves risk, and readers should conduct their own research before making decisions.