Bitcoin’s (BTC) price is nipping at the heel of the $100,000, but repeat rejections near the level continue to occur.
Let’s briefly investigate why, along with traders’ expectations of what Bitcoin’s price may do once the $100,000 milestone is achieved.
Looking at the daily chart for BTC/USD on Coinbase, a thick wall of sell orders is present at $100,000 and also at $103,000.
BTC/USD 1-hour chart. Source: TRDR.io
According to popular X crypto analyst Skew, “limit bids” are “moving higher with underlying spot buyers,” but “a lot of aggregate spot supply [is] around $100K.”
Bitcoin order book resource Material Indicators suggested that dip-buying opportunities in Bitcoin are to spring up over the weekend due to the thickness of the sell walls near $100,000 and the fact that the spot Bitcoin exchange-traded funds (ETFs) are “off” on Saturday and Sunday.
“With the ETF faucet turned off for the weekend, we could see some dip buying opportunities ahead.”
Bitcoin liquidation maps from CoinGlass show $99,500 as the price level where short traders fall under pressure, and one thing to note is the bulk of shorts here using 50x and 100x leverage. Generally, these highly levered “degen” positions are low-value retail traders subject to quick liquidation, so with a sufficient push from either the perpetual futures market or spot markets, Bitcoin’s price could quickly slice through these positions.
Bitcoin liquidation map. Binance. Source: CoinGlass
Related: Bitcoin back to $90K next? Traders diverge on BTC price pullback odds
At the time of writing, there’s a strong push from buyers on Coinbase, where the BTC/USD pair trades at a premium.
BTC price spread between Binance and Coinbase, CME futures price (bottom). Source: TradingView
Some traders cite the Coinbase premium — the spread between BTC’s price on the exchange versus other exchanges — as a bullish phenomenon. Another thing to note is that CME Bitcoin futures are currently trading at $99,600, further suggesting that spot price may follow if the CME futures price were to hit $100,000.
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.