The crypto markets are displaying sluggish behavior as most of the tokens have been trading within a very narrow range. The prices of the top tokens, like Bitcoin, have remained unchanged through out the weekend, which suggested a drop in the traders confidence and interest. Or, in another perspective, they might be waiting for the right time to enter as the markets are expected to be volatile for the rest of the week ahead of the U.S. CPI rates.
The Bitcoin liquidation levels have a deep impact on the upcoming price action in the short term. After the recent liquidity grab at the support squashing the short trades, the BTC price experienced a decent rise from the levels around $94,500 to the current levels. Meanwhile, the price is heading towards a crucial price range, which may again trigger a liquidation and this time it could be in the opposite direction.
The data from Coinglass suggests the token experienced a short liquidation of around $100M at around $95,000 and now another pile of around $200M is waiting for the token if it rises above $97,800. These longs are set to grab the liquidity at these levels, which may cause a short-term pullback, probably close to the $95,500 range. However, the technicals have turned bullish, which suggests the price may continue with a steep ascending trend if it manages to surpass the pivotal zone.
Pullback Likely Before Breakout
The short-term price action suggests the price is poised for a small pullback as the bulls seem to have exhausted their strength. The stochastic RSI has reached the overbough levels and is preparing for a bearish crossover. This cold drags the levels to the support of the descending triangle and remains consolidated with the pattern until it reaches it’s apex. However, in the long term, the 50-day MA at $98,700 acts as a strong resistance and a rise above these levels may validate the beginning of a fresh bullish trend.
Therefore, in the coming days, the Bitcoin (BTC) price may continue to chop around a narrow range as the fresh liquidity may enter only after the longs grab their liquidity at $98,000.
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