Bitcoin Liquidity Battle Intensifies as Bullish Sentiment Eyes $95K Target

Bitcoin's market dynamics are heating up as buyers and sellers clash amidst mixed U.S. employment data. The cryptocurrency is currently testing resistance levels, and if bullish momentum continues, there are targets set as high as $95,000.

Key Takeaways

Bitcoin's price is influenced by conflicting U.S. employment statistics, affecting market liquidity.
The order-book shows significant resistance at the $87,000 level.
Analysis indicates that BTC could reach $95,000 if a bullish trend develops in the short term.

Bitcoin liquidity ‘battle’ rages as bull case sees clear run to $95K

The Current Market Situation: A Tug-of-War over Bitcoin

Bitcoin's volatility took center stage during the Wall Street open on Tuesday, as the markets reacted to varying U.S. employment figures. The ongoing tension between buyers and sellers reflected the uncertain atmosphere shaped by these economic indicators.

Currently, liquidity on the order-book is being tested near the $87,000 mark, with many traders keeping a close eye on potential breakout points.

Resistance and Support: The Battle at $87,000

Recent data from Cointelegraph Markets Pro and TradingView indicate that the bulls are facing resistance just above the $87,000 level.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Following a drop to around $85,000 the previous day, market tension escalated as buyers sought to sidestep any further manipulative sell-offs during U.S. trading hours.

Material Indicators, a trading resource, commented on this situation through a post on X, showcasing Binance order-book liquidity data.

BTC/USDT order-book liquidity data with whale orders. Source: Material Indicators/X

The analysis highlighted the importance of the 100-week simple moving average as a key support level, currently standing at $84,646.

Material Indicators stated, “Both concentrations of liquidity could be viewed as guardrails prior to the release of today’s economic data.”

BTC/USD one-day chart with 100-week SMA. Source: Cointelegraph/TradingView

The released data reflected a mixed picture, as the U.S. unemployment rate rose to 4.6%, its highest since Q3 2021. Conversely, the economy added around 14,000 more jobs than predicted in November, leading to conflicting interpretations of labor market strength.

Despite this, The Kobeissi Letter noted that “the labor market is still weakening,” echoing concerns among traders.

As reported by Cointelegraph, the week's key macroeconomic event, the November Consumer Price Index (CPI) release, was scheduled for Thursday.

Looking Ahead: Potential for Higher Prices

While Bitcoin traders grappled with these market dynamics, the price remained closely tethered to liquidity zones.

BTC/USDT perpetual contract four-hour chart. Source: Crypto Tony/X

Crypto Tony stated in an update to his followers on X, “This reaction to me is sub par, and I would think if we dropped below the $84,000 region, we would see a better response for a long position off the liquidity there.”

Trader Kay suggested that BTC/USD might be on the verge of its final downward movement from its all-time high in October, arguing that previous drops were driven by significant market players selling their positions.

BTC/USDC one-day chart. Source: Kay/X

On a hopeful note, commentator Exitpump identified “huge” bid liquidity toward the $80,000 threshold, with optimism that, should resistance break, a price surge to $95,000 could unfold.

"$BTC Huge passive demand on spot orderbooks is still evident, with large asks positioned at $88K. Above that, there is thin air until $95K," Exitpump mentioned in a recent tweet.