The 32-33k area is a level of very high liquidity that formed about a year ago in June 2022 when bitcoin has a large drop in price. This would’ve induced many people to open short positions with that level in mind to clear their stop losses. The issue with this is that the crypto market is very good at sweeping those liquidity zones and it’s currently very very close to that level but has yet to hit it.
Additionally, we have a market structure tend that has been forming for the duration of this year. I think it is quite likely that we see that market structure support the price action for one last move higher simply to clear that liquidity.
If this does happen, I do not think it will last long. I think it will simply be a liquidity grab before the market structure breaks and the market begins a small downtrend.
The recent BTC move reached just shy of $32k.
The 32-33k area is a level of very high liquidity that formed about a year ago in June 2022 when bitcoin has a large drop in price. This would’ve induced many people to open short positions with that level in mind to clear their stop losses. The issue with this is that the crypto market is very good at sweeping those liquidity zones and it’s currently very very close to that level but has yet to hit it.
Additionally, we have a market structure tend that has been forming for the duration of this year. I think it is quite likely that we see that market structure support the price action for one last move higher simply to clear that liquidity.
If this does happen, I do not think it will last long. I think it will simply be a liquidity grab before the market structure breaks and the market begins a small downtrend.