Bitcoin’s price reaching $100,000 is now a matter of when, not if.
Introduction
The price of Bitcoin (BTC) has been hovering around the $100,000 mark, with repeated rejections near this level becoming a common phenomenon. In this article, we will delve into the reasons behind these rejections and explore what traders expect to happen once the $100,000 milestone is achieved.
A Wall of Sell Orders at $100,000
Looking at the daily chart for BTC/USD on Coinbase, it becomes apparent that there is a significant wall of sell orders present at the $100,000 level. This is also reflected in other exchanges, with Material Indicators suggesting that the spot Bitcoin exchange-traded funds (ETFs) are "off" on Saturday and Sunday.
BTC/USD 1-hour chart. Source: TRDR.io
According to popular X crypto analyst Skew, "limit bids" are moving higher with underlying spot buyers, but a lot of aggregate spot supply is around $100K.
Dip-Buying Opportunities Over the Weekend
Material Indicators suggests that dip-buying opportunities in Bitcoin are likely to arise over the weekend due to the thickness of the sell walls near $100,000 and the fact that the spot ETF faucet is turned off on Saturday and Sunday. This could lead to some interesting price movements as the weekend unfolds.
With the ETF faucet turned off for the weekend, we could see some dip buying opportunities ahead.
The Role of Short Traders in Bitcoin’s Price
Bitcoin liquidation maps from CoinGlass show $99,500 as the price level where short traders fall under pressure. It’s worth noting that the bulk of these shorts are using 50x and 100x leverage, which means they are low-value retail traders subject to quick liquidation. With a sufficient push from either the perpetual futures market or spot markets, Bitcoin’s price could quickly slice through these positions.
Bitcoin liquidation map. Binance. Source: CoinGlass
The Coinbase Premium as a Bullish Phenomenon
At the time of writing, there is a strong push from buyers on Coinbase, where the BTC/USD pair trades at a premium. Some traders view this as a bullish phenomenon, citing the spread between BTC’s price on the exchange versus other exchanges.
BTC price spread between Binance and Coinbase, CME futures price (bottom). Source: TradingView
CME Bitcoin Futures Price as a Guide
Another factor to consider is that CME Bitcoin futures are currently trading at $99,600. If this price were to hit $100,000, it could signal that the spot price may follow suit.
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Conclusion
The price of Bitcoin has been struggling to break through the $100,000 level, but with the right catalysts in place, it’s possible that we could see a significant push upwards. The role of short traders, the Coinbase premium, and CME Bitcoin futures prices are all factors that could influence the price of Bitcoin in the coming days.
Recommendations for Traders
- Monitor the Coinbase Premium: Keep an eye on the spread between BTC’s price on Coinbase versus other exchanges.
- Watch CME Bitcoin Futures Prices: Pay attention to the prices of CME Bitcoin futures, as they can provide a guide for spot prices.
- Be Aware of Short Traders’ Positions: Understand the risks associated with short traders and be prepared for potential price movements.
Disclaimer
This article is for informational purposes only and should not be considered investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.