Bitcoin (BTC) hovered near $87,000 at the Wednesday Wall Street open as analysts eyed short liquidations.
Key points:
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Bitcoin liquidity conditions analysis predicts a return toward $90,000 next.
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Range-bound short-term price moves see trader bets pile in either direction.
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US macro data gives stocks a modest boost but fails to sway crypto.
Liquidity could see BTC “pulled up” toward $89,000
Data from Cointelegraph Markets Pro and TradingView showed flat BTC price action characterizing the day’s trading.
BTC/USD one-hour chart. Source: Cointelegraph/TradingViewA lack of volatility allowed liquidity to build either side of price, with $88,000 now an area of interest for trading resource TheKingfisher.
“There are a lot of short liquidations for $BTC on Binance around $88,253.90, which means the price could get pulled up towards that level,” it explained in a post on X.
BTC order-book liquidity data. Source: TheKingfisher/XCrypto investor and entrepreneur Ted Pillows flagged $89,000 as the key reclaim level for shorts to feel the pain.
“If BTC reclaims the $89,000 level, upside liquidity will be swept first. If Bitcoin loses the $85,000 level, the downside liquidity will be taken out before a bounce back,” he told X followers the day prior.
Data from monitoring resource CoinGlass put the major liquidity draws at $84,500 and $88,500 at the time of writing.
BTC liquidation heatmap. Source: CoinGlassCrypto analyst Lennaert Snyder noted that the long/short ratio among traders was “roughly 50/50” into $89,000 resistance.
“We need Bitcoin to eat some stop losses and grab fuel before the next directional move,” he commented.
Bitcoin steady as S&P 500 heads higher
The day’s macroeconomic data prints had little impact on the stubborn BTC price action.
Related: Bitcoin price bottom due ‘this week’ with BTC down 20% in November
US jobless claims came in below expectations, potentially reflecting strengthening labor-market conditions.
Despite this, stocks climbed after the open, while bets of a Federal Reserve interest-rate cut in December remained favorable to risk assets.
CME Group’s FedWatch Tool put the odds of a 0.25% cut at the Fed’s Dec. 10 meeting at 83% at the time of writing — up considerably from 30% just a week prior.
Fed target rate probability comparison (screenshot). Source: CME GroupWhile acknowledging rising fear levels, trading resource The Kobeissi Letter stressed that the S&P 500 was now just 2% away from fresh all-time highs.
“Asset owners are winning,” it concluded.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: https://cointelegraph.com/news/bitcoin-analysis-89k-short-squeeze-sp500-2-percent-all-time-high?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
