FameEX Hot Topics | Bitcoin Liquidity Battles Persist, BTC Price Target Stays at $140K

Bitcoin’s Net Taker Volume has once again turned negative, dipping below $60 million, as reported by CryptoQuant. This metric suggests that market participants, primarily takers executing trades, are predominantly selling. The negative readings indicate a growing bearish sentiment among retail traders, even as Bitcoin hovers near its record highs. This shift in sentiment points to an underlying cautiousness in the market.

Regional demand trends further support the bearish outlook. Despite Bitcoin’s strong rally, US spot buyers are showing hesitation. Many seem to be taking profits or sitting on the sidelines, waiting for more favorable entry points. In contrast, the Korea Premium Index has entered negative territory, reflecting that Bitcoin is trading at a discount on Korean exchanges. This discrepancy signals ongoing selling pressure and a lack of enthusiasm from Korea-based retail traders, reinforcing the bearish sentiment in the broader market.

Despite these signs of bearish sentiment, Bitcoin’s ability to maintain a position between $110,000 and $115,000 is a positive development. Crypto analyst Boris Vest observed that the ongoing liquidity battle, with sellers being absorbed near $116,000 and buyers capped near $120,000, suggests a healthy two-sided market. This indicates that while the market may be cautious, there is still support for the price within this range, and the market is not experiencing a collapse.

From a technical standpoint, the possibility of a breakout above $120,000 remains viable. However, a sweep of the daily fair value gap (FVG) between $115,200 and $112,000 could be necessary to trigger the next leg up. A move into this zone could prompt liquidations, setting the stage for a strong rally past the current all-time high of $123,100, as most price inefficiencies above have already been filled.

For this scenario to play out, Bitcoin must exhibit a sharp bullish reaction when retesting the FVG. If the price fails to quickly rebound after dipping below recent lows near $115,700, it could signal fading momentum, exposing the market to downside risk. The speed and strength of any bounce from this liquidity zone will be critical in determining whether Bitcoin is poised for further gains or a deeper retracement. According to Bitcoin researcher Axel Adler Jr., the market remains in the growth zone, with further upside potential toward $139,000 without significant risk of overheating.

Bitcoin researcher Axel Adler Jr. mentioned that BTC is still in a growth phase, with "market participants continuing to back buying activity." He also pointed out, "We haven't entered a phase of excessive optimism yet, and there's still potential for further gains toward $139K without the risk of overheating."

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.