$BTC – Why I’m staying cautious around the $79.5K move.
The upside move has been impressive, but look at the liquidation structure. Shorts were aggressively squeezed out of the market on the way up, which means a significant part of this move may have been driven by forced liquidations rather than genuine spot demand.
There’s also a major liquidity imbalance to keep in mind. Around $12B in liquidity sits below $BTC between $61.5K and $74K, while only around $1B sits above between $78.5K and $82K.
That’s a huge difference.
So while the squeeze can continue, I’m not chasing the move here. The key is whether $BTC can hold these higher levels with real spot demand. If the buying starts to fade, the large liquidity pool below could become the next major draw.
The upside move has been impressive, but look at the liquidation structure. Shorts were aggressively squeezed out of the market on the way up, which means a significant part of this move may have been driven by forced liquidations rather than genuine spot demand.
There’s also a major liquidity imbalance to keep in mind. Around $12B in liquidity sits below $BTC between $61.5K and $74K, while only around $1B sits above between $78.5K and $82K.
That’s a huge difference.
So while the squeeze can continue, I’m not chasing the move here. The key is whether $BTC can hold these higher levels with real spot demand. If the buying starts to fade, the large liquidity pool below could become the next major draw.
