Bitcoin’s $100K puzzle: Institutional demand vs. deep liquidity traps

• Large institutional capital flowing into BTC Spot ETFs, however bulls have to clear the $104.9k resistance first.
• BTC OTC sell-side liquidity was drying up quick, however there are extra excessive leveraged liquidity ranges beneath $101K.

From mid-April, Bitcoin [BTC] Spot ETFs have seen a gentle stream of investments, taking over a lot of crypto inflows. Renewed curiosity from establishments made the influx quantity a lot greater than the outflow quantity.

On the identical time, the worth of the king coin went up steadily, suggesting demand from ETFs helped assist the worth. This sample confirmed that BTC publicity noticed internet inflows of just about $1 billion.

Supply: CoinGlass

Whereas greater ETF influx supported greater costs, statistics indicated value dropoffs if the momentum fades.

The worth of BTC could rise if the influx saved rising. Nevertheless, a lower in exercise might weaken BTC costs resulting from its optimistic development.

Key ranges and value evaluation

Bitcoin’s charts confirmed robust beneficial properties adopted by tightly compressed buying and selling. Initially, value consolidated between $83K and $86K. When the worth broke out of the vary, consolidation occurred between $93K and $96K.

Because of the sample talked about, the following upward transfer brought about the worth to consolidate between $101K and $105K.

Supply: TradingView

Given these elements, it’s prudent to attend for BTC to maneuver exterior the $101K and $105K vary. If costs break above $105K, it’d imply the market will proceed to rise and will attain new data.

However, if the worth goes beneath $101K, it may very well be a bearish development that tries to succeed in the decrease finish of assist.

On this degree, BTC being ranged leads to the truth that issues are equal, and the route it breaks out might present the primary indicators of its short-term motion.

BTC OTC and perpetual liquidity ranges

On the promote facet, the information confirmed that Bitcoin’s liquidity dropped considerably on all varieties of platforms since attaining its most.

With the variety of introduced gross sales lowering quick, it appeared that liquid provide of Bitcoin was lowering shortly.

Supply: X

A scarcity of Bitcoins in the marketplace might, the truth is, result in a surge in pricing, and this might occur in 2025 so long as demand doesn’t fall.

In the meantime, the quantity of contemporary liquidation throughout BTC perpetual contracts identified a number of liquidation factors for positions with much less leverage, as much as the $101,000 degree.

There have been some excessive leverage longs at $99,459, $98,669, medium leverage longs at $100,522, and $100,033.

Relating to brief positions, low leverage liquidations have been evident at and above the present value, as an example at $105,764 but in addition at $105,498.

Supply: TradingView

It identified that there have been “extra excessive leveraged liquidity ranges discovered beneath $101K.” All in all, this pointed to the provision of BTC being squeezed, which might trigger a rise in costs.

Even so, if Bitcoin costs fall towards the main liquidation ranges beneath $101,000, a lot promoting could end result, inflicting the worth to fall much more earlier than any rise resulting from a provide shock can occur.