Key Points:
The price of BTC has continued to decline after dropping over 4% in a few hours.
Liquidity has begun to recover, so short-term volatility may increase.
BTC price predictions indicate that a local bottom could be as low as $114,000.
BTC struggled to return to $122,000 on Wednesday as exchange users bet on a new round of volatility in BTC prices.
Data from Cointelegraph Markets Pro and TradingView shows that BTC is in a consolidation phase after a sudden 4.2% pullback the previous day.
Given the continuous record highs but lack of strong upward momentum, this pullback was largely expected.
As reported by Cointelegraph, the rapidly increasing open interest (OI) in the derivatives market has heightened concerns that Bitcoin may retrace some of its recent gains.
Trader Skew commented in a post on X on Tuesday: "To be honest, this is very efficient price action, so volatility has been low so far." At that time, the pullback was forming.
Skew then noted the "predatory" behavior of large traders on the exchange order book.
Clear PvP -> Predatory price action ongoing here via Binance market on $BTC spoofing on the ask aka above price on spot spoofing on the bid aka below price on perps. How the predatory strategy works? Aim is to temporarily hold or lift price via perps & then push market lower by…
However, overnight market liquidity began to flow back, with CoinGlass data showing that both buyer and seller liquidity were thickening at the time of writing.
Skew pointed out that the market may form a "consolidation range."
Other analysts are considering where BTC might establish a reliable local bottom, warning that this level could be significantly below the current spot price.
"There is almost no support in the $121,000-$120,000 range, which means that if selling pressure increases, the price could drop rapidly," trader ZYN noted on the X platform.
ZYN predicts where demand will support prices by analyzing the recent cost basis of buyers.
"If we pull back to that area, such areas usually see strong demand—buyers actively defend their entry points, and new funds start to flow in. In short: $121,000 is a weak buffer, while $117,000 is forming a substantial bottom support," he summarized.
The trading resource platform Material Indicators also marked the $120,000 support level using its proprietary trading signals but indicated that a stronger rebound base is near $114,000, close to BTC's 50-day simple moving average (SMA).
For cryptocurrency trader, analyst, and entrepreneur Michaël van de Poppe, the next buying area extends to $118,000.
Michaël van de Poppe analyzed: "BTC hitting new all-time highs usually means investors start to take profits."
Related: Strategy Bitcoin (BTC) positions approach $80 billion, closely following tech giants' cash reserves
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original: “Predatory” traders squeeze Bitcoin long positions, BTC risks falling to $114,000
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