More Bitcoin and altcoin news as the market analyst Michaël van de Poppe (@CryptoMichNL) noted fresh price action and on-chain insights. He added that Bitcoin to date has drawn liquidity under the price level of $116,800 and made a sharp turn upwards.
The biggest digital asset is currently “chopping” between $116k and $123k as the broader altcoin market continues to pump up by up to 30% in the last week alone.
Bitcoin Liquidity Sweep and Spring
Van de Poppe claims that this drop of Bitcoin prices below the price of 116.8K has taken liquidity and quickly inverted upwards. He wrote, “We have even taken in some liquidity on sub-$116.8K, and we have inverted promptly upwards, which shows sell pressure being absorbed on perceived support levels.”
Since liquidity has now been positioned above the old swing highs, he thinks that near-term Bitcoin will be trading within the range of $119K to $123K, as the market gathers itself before it breaks out to the next big move.
Altcoin Performance and Warning Note
Bitcoin faces the struggle to exit this range, and at the same time, the altcoins have skyrocketed. Ethereum reached an all-time high of $3,800, and a lot of altcoins have been seen making gains of 30–50% in the last week as a result of the rotation of capital.
Van de Poppe applauded these gains but cautioned that strong rallies typically precede strong corrections. He advised traders to be cautious of potential pullbacks, stating that this approach should be the strategy for managing risks during the big moves.
Entry Points to Strategy: Inducing the Dip
Van de Poppe continues to emphasize the buy-the-dip strategies. Bitcoin is consolidated in the mentioned range, and most altcoins tend to retreat after strong moves. Buying opportunities may be established by identifying areas of support whereby an entry point may appear as buying into a dip towards the bottom of the range.
Monday to Friday outlook
These factors are being considered in the market. The traders will monitor the giant asset to see whether it can breach the level of $119,000 and surpass $123,000 to indicate a fresh rally.
Altcoins can halt or retrace and hold out before resuming to push higher.
The thoughts of Van de Poppei again focus on making sure that we keep ourselves aware of liquidity zones and that we should be ready to engage in any corrections to be in a position to catch the next wave of momentum in Bitcoin and other altcoins as well.
