While Bitcoin has been trending sideways for the past four weeks, the price found support at $74,000 and faced stiff resistance in the $78,000 to $80,000 range. While the price congestion continued in the crypto market, the intraday rise up to $ 78,164 attracted attention. It was stated that at this level, previously opened and loss-making positions were closed, meaning that the price touched a psychological point.
Market Movements and Liquidity Density
According to the analytics platform Hyblock, a significant portion of both long and short positions closed at neutral levels during the price movement during the day. At this point, the conflict between buyers in the spot market and sellers in the derivative market comes to the fore. Hyblock experts pointed out that liquidity accumulated rapidly, especially in the range of $75,675 to $75,700. These levels stand out with high transaction volume and are seen as having the potential to attract the price in the short term.
Mini dictionary: Liquidity pocket is the name given to areas where buyer or seller orders accumulate intensively within a certain price range and may cause sudden movements in price. In crypto markets, these zones often lead to short-term price fluctuations.
Big Buyer’s Strategy and Market Impact
Blockstream’s CEO, Adam Back, stated in his post on the X platform that an unnamed Bitcoin investor collected approximately 450 Bitcoins per day with the time-weighted average price (TWAP) method. Trading with this strategy for the last eight and a half days, the whale prevented a certain fluctuation in prices and established an average purchase cost.
The TWAP method is known as an algorithmic buying type that allows large amounts of assets to be purchased piecemeal over time, in order to be unaffected by sudden price movements in the cryptocurrency market. This tactic prevents the price from jumping suddenly in case of effective entries into the market.
Mini dictionary: TWAP (Time Weighted Average Price) is a method of dividing large amounts of transactions into a certain time interval and executing purchases and sales at the average price. It is used to reduce price manipulation, especially in markets where liquidity is limited.
“The majority of investors with long positions closed their transactions by resetting their losses at this level. Investors with short positions exited at the same level to protect their profits, and therefore the price frequently retreats in this range.”
Interaction in Spot and Derivative Markets
Analyzes show that the sudden price fluctuations experienced in recent days were triggered by sales initiated in derivative markets; However, it was observed that demand in the spot market kept the price balanced. It is stated that as a result of this interaction, Bitcoin’s support at the $ 74,000 level has become stronger. It was observed that the price tended to retreat, especially after $ 78,000, while sell orders accumulated.
| Price Level | Support/Resistance | Order Density |
|---|---|---|
| $74,000 | Support | high receiver |
| $75,675–$75,700 | liquidity pocket | intensive processing |
| $77,700–$80,000 | Resistance | Mainly seller |
Latest Status in Order Book
Depth analysis of the order book shows that sell orders intensify starting from $77,700, while demand decreases significantly between $78,000 and $80,000. This data indicates that Bitcoin will continue to have difficulty within this band in the short term.
Bitcoin price has been on a slower rise recently compared to US technology stocks. However, since the support point remains strong, a significant downward break is not expected in the market.
