BTC price nears 2-week highs as volatility clears Bitcoin sell orders

Bitcoin (BTC) saw fresh volatility at the March 27 Wall Street open as analysts said that short liquidations were now long overdue.

Bitcoin takes sell-side liquidity before fresh dip

Data from Cointelegraph Markets Pro and TradingView tracked BTC price action as it hit its highest levels in nearly two weeks — $71,754 on Bitstamp.

A sudden correction then saw BTC/USD drop $1,300 in minutes, going on to total more than 4% as bulls fought to flip the key $69,000 zone to support.

The latest data covering flows for the United States spot Bitcoin exchange-traded funds (ETFs) remained encouraging.

After net inflows of more than $400 million the day prior, Wall Street trading began with a modest 1,300 BTC ($91 million) outflow from the Grayscale Bitcoin Trust (GBTC).

The figures, from crypto intelligence firm Arkham, were uploaded to X (formerly Twitter) by popular trader Daan Crypto Trades.

“We’re indeed seeing some high volatility as well,” he added in a further post, noting that the local highs had filled a large wall of BTC sell orders.

Liquidating short BTC positions was now a key topic of discussion for market observers. The latest data from on-chain monitoring resource CoinGlass showed bids thickening around $69,000 — a potential safety net should the market reverse.

Further out, fellow trader CrypNuevo hoped for an attack on the final band of shorts around recent all-time highs at $74,000.

“Mid term: Liquidity at both sides but more likely to go for the upside liquidations at $74.1k because they’re closer from current price,” he reasoned in part of an X post.

$69,000 remains key point on the BTC price map

With $68,500 coming back into play at the time of writing, popular trader Crypto Ed was among those calling for calm.

Related: Bitcoin ‘sell-side liquidity crisis’ sees BTC move for the first time since 2010

That price, he said in his latest YouTube video released on the day, would form a potentially suitable long entry and would not constitute a major corrective move.

“Not really sure if this next move is really a big one — $73,000 maybe,” he suggested about where BTC/USD could go thereafter.

A further correction could then set in before attacking the all-time highs.

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.