Bitcoin closes the week around $91,000…"Attention on potential increase in volatility"

Suehyeon Lee

Summary

Bitcoin closed the week at $91,000, drawing market attention to the potential for increased volatility in the short term.
On exchange order books, $92,000 was identified as the key level to watch, and the possibility of a $100,000 retest due to an upper liquidity gap was also mentioned.
It stated that the macro impact of the Venezuela situation and the decline in Bitcoin's weekly RSI leave room for a medium-term rebound.

Bitcoin closed the weekly session around the year-start high of $91,000, and the market is focusing on the possibility of increased volatility in the short term due to liquidity absorption.

On the 5th (local time), Cointelegraph reported that Bitcoin (BTC) traded above the $91,000 level over the weekend. After U.S. military measures concerning Venezuela prompted the market's first reaction, Bitcoin rose by up to about 2% over the weekend.

Before traditional financial markets reopened, traders monitored the liquidity distribution on exchange order books to gauge short-term price direction. Market analyst Daan Crypto Trades, citing CoinGlass data, said, "The largest liquidity concentration is formed below the $88,000 level near the year's opening price," and "On the upside, $92,000 is the key level to watch." This aligns with the upper boundary of the box range that has been maintained for a long period.

Some market participants are also noting the upper liquidity gap. Market commentary account Exitpump said, "There is relatively little sell volume above $95,000, so if the price moves, a retest of $100,000 could happen quickly," adding that Bitcoin has repeatedly shown 'fake-out' flows that liquidate adjacent positions on both the top and bottom during several recent weekly candle closings.

The macro environment is also raising the possibility of heightened volatility. The Kobeisi Letter warned that the Venezuela situation could affect the global economy overall, saying, "This is a phase in which stocks, commodities, bonds, and cryptocurrencies could all move simultaneously." It also mentioned pressure on the gold market given that Venezuela is the largest gold holder in Latin America.

In this regard, analyst Michaël van de Poppe offered an optimistic view on the relative flow between Bitcoin and gold. He said, "The gold chart relative to Bitcoin has begun to enter an uptrend," adding, "Although confirmation through a new high is still needed, the market structure looks positive." He also added, "Bitcoin's weekly RSI has fallen to its lowest level since the end of the 2022 bear market. From a medium-term perspective, there is room for a rebound."

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