Key Summary:
Bitcoin is experiencing a new round of increases before the Wall Street opening, with target prices approaching $117,000.
Increased liquidity below the price has raised market concerns that Bitcoin may still "liquidate" long positions.
Gold has reached a new historical high, and Bitcoin is finally attempting to follow its trend.
On Wednesday, Bitcoin (BTC) approached $117,000, with bulls continuing to avoid a BTC price correction.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin on Bitstamp reached a new local high of $116,593.
After closing up 5.2% in September and accumulating a 6.3% increase in the third quarter, BTC has attracted market predictions for new historical highs.
Cryptocurrency analyst and entrepreneur Ted Pillows wrote in a recent analysis on his X platform: "The next major resistance level is around $117,500. If BTC reclaims that position, it will surge towards new historical highs."
Pillows pointed out key liquidity areas on the exchange order book, suggesting that these areas could either push the price up or suppress it.
$BTC has 2 decent liquidity clusters right now. One around the $107,000-$108,000 level, which has $8 billion in long liquidations. The other is around the $118,000-$119,000 level, which has $7 billion in short liquidations. Which one do you think will happen first? pic.twitter.com/8dBuyQMoUj
The previous day, due to increased liquidity below, trading information platform TheKingfisher warned that the market might face a correction.
It told fans on X: "A large amount of long liquidations is accumulating below the current price. This is 'fuel,' and prices often get pulled towards these areas. Many retail leveraged positions are about to be cleared."
As Cointelegraph has continuously reported, order book liquidity often leads to "false breakouts" in either direction for Bitcoin, as large traders exploit other market participants.
According to CoinGlass, as of the time of writing, the total amount of cryptocurrency short liquidations in the past 24 hours reached $400 million.
The latest surge in Bitcoin coincides with gold reaching a new historical high. As a strong-performing precious metal this year, gold has set a new record of $3,895 per ounce.
For a long time, Bitcoin traders have hoped that BTC could replicate gold's performance. According to Cointelegraph, a prediction this week suggested that the eight-week delay in Bitcoin mirroring gold's trend may soon end.
Notable trader HTL-NL posted a chart of Bitcoin priced in gold, showing it is attempting to break through a key long-term resistance level.
$BTC in gold. pic.twitter.com/XhVxMk655A
Meanwhile, Andre Dragosch, European research director at cryptocurrency asset management firm Bitwise, believes that the momentum in gold is fading.
He stated on X: "For reference— I think this wave of increases has come to an end," noting that "the current gold market is overly trend-following and groupthink is evident."
Dragosch concluded: "This could signal a rebound in risk appetite and prompt a rotation of funds into Bitcoin."
This article does not constitute investment advice or recommendations. All investment and trading activities carry risks, and readers should conduct their own research when making decisions.
Related: BitMine expands Ethereum treasury holdings to 2.65 million, Tom Lee says ETH is trading at a "future discount price."
Original article: “Bitcoin (BTC) Revives Correlation with Gold, Price Nears $117K”
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