Bitcoin Liquidity Wars: Bulls Target $140K Amid Market Volatility
bitcoin Faces Resistance Amidst Mixed Market Sentiment
Key Insights
- bitcoin‘s recent price stagnation is attributed to declining taker volume on Binance and a lack of robust demand in the US and Korean markets.
- The cryptocurrency remains above the $115,000 mark, indicating strong buyer interest, which may lead to new price highs.
bitcoin (BTC) has encountered challenges in sustaining its upward momentum following a record peak of $123,100 reached last Monday. This pause in price movement is largely influenced by selling pressure from retail investors, particularly on the Binance exchange.
Recent data from CryptoQuant reveals that bitcoin‘s Net Taker Volume has dipped below $60 million, suggesting that most market participants are opting to sell. This trend highlights a growing bearish sentiment among retail traders, even as bitcoin remains close to its all-time high.
Regional Demand Trends Indicate Caution
Further analysis of regional demand trends reinforces this cautious outlook. The Coinbase Premium Index, which tracks the price difference between Coinbase and other exchanges, has remained stable throughout July. Despite bitcoin‘s recent surge, US buyers seem reluctant to engage, possibly waiting for more favorable entry points or taking profits. In contrast, the Korean Premium Index has fallen into negative territory, indicating that bitcoin is trading at a discount on Korean platforms. This discrepancy points to ongoing selling pressure and a general lack of enthusiasm among retail traders in Korea.
Bulls Maintain Position Amidst Liquidity Challenges
Despite the bearish indicators, bitcoin‘s ability to stay above the $110,000 to $115,000 range is a positive sign. Analyst Boris Vest has pointed out that this ongoing liquidity struggle—where sellers are being absorbed around $116,000 and buyers are capped near $120,000—demonstrates a healthy market dynamic.
Even with significant selling pressure on Binance, the recent negative cumulative volume delta of $4.1 billion was quickly countered by a $2.3 billion positive spike as buyers entered the market. This resilience at lower price levels suggests that demand remains strong. As long as bitcoin can defend the mid-$110,000 area, bulls retain control, with potential for upward movement if selling pressure decreases. The longer this tight trading range persists, the more likely it is to set the stage for a breakout that favors the prevailing upward trend.
Technical Analysis: Potential for Breakout
From a technical standpoint, while a breakout above $120,000 is feasible, revisiting the daily fair value gap (FVG) between $115,200 and $112,000 could provide the liquidity needed for the next upward movement. Entering this zone may trigger liquidations and pave the way for a significant rally past the current all-time high of $123,100, especially since price inefficiencies above have largely been addressed.
For this scenario to unfold, bitcoin must exhibit a strong bullish reaction upon retesting the FVG. A failure to rebound swiftly after breaching recent lows around $115,700 could indicate waning momentum and expose the market to further downside risks. In summary, the strength and speed of any bounce from this liquidity zone will be crucial in determining whether bitcoin is set for continuation or a deeper retracement.
Market Outlook: Room for Growth
bitcoin researcher Axel Adler Jr. believes that BTC remains in a growth phase, as buying activity continues to be supported by market participants. He noted, “We haven’t yet entered a phase of excessive optimism; there’s still room for further upside toward $139K without a serious risk of overheating.”
In conclusion, while the current market dynamics present challenges, the underlying support for bitcoin suggests that there is still potential for significant price movement in the near future.
This article is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research before making any financial decisions.
