Bitcoin (BTC) hovered around $95,000 on December 29, as liquidity-driven fluctuations became evident in exchange order books. Traders and analysts closely monitored market activity, anticipating potential volatility before Bitcoin closed its yearly candle.
Price Break Needed to Hit $97,300
Weekend trading saw BTC/USD confined to a narrow range, with minimal upward momentum. According to data from TradingView, the cryptocurrency’s price action remained subdued following a volatile final Wall Street session of the week.
Market analysts urged caution, citing liquidity analysis and trading signals. Material Indicators, a prominent trading resource, noted that two of its proprietary algorithms had issued bearish signals.
“FireCharts shows an $86 million bid ladder pushing BTC price up from the lows. However, a red signal from the Trend Precognition A1 algo, following consecutive red signals from the A2+ algo, suggests the price is unlikely to surpass yesterday’s high before today’s daily candle closes,” the group wrote on X (formerly Twitter). They added that breaking the $97,300 level would invalidate these bearish signals.
BTC/USD 1-hour chart. Source: TradingView
Meanwhile, liquidity movements on the Binance BTC/USDT pair led popular trader Skew to adopt a cautious stance. Skew highlighted how buy liquidity had shifted closer to the spot price, potentially signaling further upside if this pattern holds.
“I’ve been observing these limit bids throughout the day, which have conveniently moved higher towards the current price,” Skew commented. “This is often a sign of what’s to come, as large market players attempt to influence or control the price.”
Skew added that he expects more such liquidity “games” to unfold as Bitcoin approaches the yearly open.
Q4 Performance Rivals 2023 Gains
Despite the cautious sentiment, Bitcoin’s quarterly performance has remained impressive. At $95,000, BTC has dropped just 1.25% in December but has achieved over 50% gains for Q4. This nearly matches its performance for the entirety of 2023, according to data from CoinGlass.
While some market analysts predict further price corrections before the next bullish phase, veteran traders remain optimistic about Bitcoin’s long-term trajectory.
BTC/USD 1-day chart. Source: Material Indicators/X
One such trader, known as Titan of Crypto, shared a chart on X outlining Bitcoin’s potential “roadmap” through 2025. The chart utilised Wyckoff analysis, predicting that BTC could continue its ascent to macro highs before entering a distribution phase.
Final Thoughts
With Bitcoin trading near $95,000 and Q4 returns showcasing its resilience, market participants remain divided on short-term price action. While signals point to caution, optimism persists for the long-term outlook, as traders brace for potential volatility heading into the yearly close and 2024.
