Key points:
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According to analysis, Bitcoin can maintain the bull market range if it reclaims the $108,400 mark in the coming hours.
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Volatility increases heading into the weekly close as thin order books record $200 million in 24-hour liquidations.
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Altcoin futures show the losses traders have suffered since the last bottom of the bear market.
Bitcoin (BTC) caused volatility at Sunday's weekly close as the price approached a key recovery level.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Traders expect BTC prices to fluctuate even more
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local highs of $108,260.
After a painful end to the TradFi trading week that saw Bitcoin fall below $104,000, sell-side pressure appeared to be easing ahead of what X trader Daan Crypto Trades described as an “interesting week.”
“Volatility is definitely high here as the books are thin after this massive market rise,” he wrote.
Looking at the liquidation data, Daan Crypto Trades predicted that volatility would continue “for a while.”
“The books are thin. Especially after the massive liquidation last week,” he added.
“Combined with the weekend price action and many emotional traders, this results in relatively volatile moves over short time frames.”
The latest figures from monitoring resource CoinGlass put total crypto liquidations in the 24 hours to the time of writing at more than $200 million.
Both bid and ask liquidity condensed around the price in the exchange's order books a few hours before the weekly close.
“Bitcoin is not far from reaching a positive weekly close above $108,381 to maintain the historical weekly demand area (orange), despite the bearish wicks below,” said trader and analyst Rekt Capital while uploading the weekly chart to X.
Altcoin futures explain the gloomy crypto sentiment
According to data from the Crypto Fear & Greed Index, relief from further downside was enough to lift crypto market sentiment out of the “extreme fear” zone.
Related: Despite bullish RSI data, Bitcoin price is well positioned for a next decline around $95,000
The index hit 29/100 on Sunday, seven points above the six-month low recorded a few days earlier.
In his commentary, crypto trader and analyst Luke Martin, host of the STACKS podcast, called altcoins a major drag on overall market sentiment.
In an X post on Saturday, Martin uploaded a chart showing the performance of Binance's top 50 altcoin futures. The chart was created by Chris Jack, Chief Growth Officer of algorithmic crypto trading firm Robuxio.
“This chart perfectly illustrates why sentiment is bearish/tired even though BTC is still above $100,000,” he argued.
“A basket of the top 50 altcoins is now trading BELOW where they were after the FTX crash in 2022.”
Martin pointed to the implosion of crypto exchange FTX, which famously triggered a major market decline and set crypto up for the bear market bottom in late 2022.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
