Bitcoin reached its highest level of the week, rising above $65,000 during the Wall Street open on Monday. According to TradingView data, BTC/USD parity rose to $65,555 on the Bitstamp exchange. This level was recorded as the highest price since Wednesday.
Liquidity clusters determine the direction in the market
The price action came despite a weak open in US equity markets. While the uncertainty regarding the process between the USA and Iran continued, the stock markets started the day with a decline. On the other hand, the atmosphere in the markets calmed down somewhat after the USA gave Iran oil trade a two-month space. The barrel price of WTI crude oil also decreased to around 73 dollars, approaching its lowest levels since the beginning of March.
Evaluating TradingView and CoinGlass data, market participants stated that the intense liquidation zone above 65 thousand dollars was cleared immediately after the Wall Street open, and that it is important which direction the price settles in the next few hours.
It was reported that the main focus in intraday transactions in the cryptocurrency market is the buy and sell orders accumulated around the spot price. Analyst Daan Crypto Trades stated that the thick liquidation cluster above 65 thousand dollars was taken and that the new direction that will occur in the short term should be closely monitored.
CoinGlass is widely known as a market tracking platform that compiles futures and liquidation data. Liquidation means the automatic closing of leveraged positions due to lack of collateral and can accelerate sharp price movements in a short time.
Mini dictionary: Liquidation is the forced closing of the position by the stock market as a result of the price moving in the opposite direction in leveraged transactions. The liquidity set refers to order and stop levels concentrated in certain price regions.
The possibility of 70 thousand dollars and cautious warnings came to the fore
CrypNuevo, which monitors the market, evaluated that the Bitcoin price could make a new move towards 70 thousand dollars if the buyers maintain the short-term break. However, some traders emphasized that they should be more careful, looking at the price structure in recent weeks.
Liquidations amounted to 2.5 billion dollars in 7 days
CryptoReviewing account, which examines liquidity and transaction flow, described the recent liquidations as extraordinarily harsh. According to shared data, a $2.5 billion position was liquidated in the Bitcoin market in the last seven days. In the same evaluation, it was stated that there is still significant liquidity above the range of 65 thousand to 67 thousand dollars and this could be the next target area.
CryptoReviewing stated that there has been a liquidation of $2.5 billion in the last seven days, and that purchasing the liquidity accumulated above the range of 65 thousand to 67 thousand dollars could push the price to higher levels.
On the other hand, trader Killa pointed out that Mondays have recently tended to form weekly local peaks. Stating that six Mondays in the last six weeks point to a short-term peak, the analyst noted that if the intraday strengthening continues, this may be a pattern that needs to be tested again.
