- Bitcoin long and short positions see parity after BTC price volatility hits an all-time low.
- Experts believe institutional traders could hunt liquidity at the $16,500 level, based on the liquidation levels heatmap.
- BTC could gather liquidity between the $16,200 and $16,500 level before a run-up to the $18,000 target.
Bitcoin price missed out on the Santa rally as the asset’s volatility hit a historic low. The past week's events offered no push to BTC volatility without a macroeconomic trigger for the asset’s price trend.
Also read: Bitcoin prepares for spike in volatility after holding steady through US stock market bloodbath
Bitcoin price volatility hits all-time low, BTC misses the Santa rally
Bitcoin volatility hit an all-time low on Christmas. Periods of low volatility precede periods of explosive price moves in Bitcoin. Will Clemente, a Bitcoin analyst, shared a chart of the Bitcoin Volatility Index, highlighting BTC’s new all-time low volatility.
Bitcoin Historical Volatility Index
Experts on crypto Twitter have spotted similarities between Christmas 2018 and the 2022 cycle. Christmas 2018 marks Bitcoin's last bear market phase during its previous halving cycle. Analysts are convinced that the length of time between BTC’s prior all-time high and Christmas lows is broadly similar.
Bagsy, the analyst on crypto Twitter, believes that the most significant asset by market capitalization could fail to bounce above the $25,000 level. The asset’s recovery would primarily rely on the halving year 2024.
After BTC missed its Santa rally, the cryptocurrency prepares for its next market trough. Toni Ghinea, the crypto analyst and trader, predicted a bull trap between $17,500 and $19,000 in December 2022 before a final crash to the $11,000- $14,000 level in Q1 2023.
Could BTC collect liquidity before running up to the $18,000 level?
Based on data from Bitcoin liquidity charts, technical analyst CrypNuevo believes there is a high possibility that the $17,100 and $17,500 levels could get tagged before the end of 2023.
Liquidation Levels Heatmap
According to the Liquidation Levels Heatmap, there is $50 billion worth of liquidation between the $13,500 and $14,000 levels. If the BTC price drops to this level, cascading liquidations could increase the pressure on the asset. Analysts believe that Institutional traders will slowly increase activity in the next few days, and markets will gain some volatility.
Analysts argue that liquidity levels are essential to retail investor activity. In a downtrend, CrypNeuvo argues that traders can’t dismiss the possibility of a short-term long set up in downtrend. The expert believes scooping up BTC between $16,200 and $16,500 is the ideal trade setup before the asset targets the $18,000 level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Worldcoin Price Prediction: Is WLD done with uptrend after 77% rally?
Worldcoin has paused its uptrend as it currently trades at $1.57. This move comes after the altcoin rallied a whopping 77% in just three days, between September 13 and 16. As WLD hovers aimlessly, investors need to be patient to catch the next volatile move.
Ethereum whales prepare ahead of futures Ethereum ETF approval on October 2
Ethereum (ETH) price is likely going to witness a massive spike in volatility soon due to the circumstances surrounding the approval of the token’s futures Exchange-Traded Fund (ETF). According to Twitter users, the ETF is likely going to be approved on October 2.
Ripple Price Forecast: Declining network growth and underwater XRP holders suggest more downside for XRP price
Ripple (XRP) price shows a lack of buying pressure after its win against the US Securities and Exchange Commission (SEC) on July 13. Since then, the remittance token has been on a downtrend. Considering Ripple’s current position, a further decline would not be surprising.
Chainlink Price Prediction: LINK bears set to wipe 25% gains
-637336005550289133_XtraSmall.jpg)
Chainlink price shows an exhaustion of the bullish momentum as it approaches a key reversal zone. This development could see LINK trigger a steep correction that could undo recent gains.
Bitcoin: BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.