FameEX Hot Topics | Bitcoin Liquidity Wars Continue, Yet BTC Price Target Holds at $140K

Bitcoin’s Net Taker Volume has turned negative again, falling below $60 million, according to CryptoQuant. This indicates that market takers, or those executing trades, are predominantly selling. The negative reading highlights a growing bearish sentiment among retail participants, even though Bitcoin remains close to record highs. This downturn in trading activity suggests that the market may be facing increasing caution.

Regional trends further emphasize this bearish outlook. Despite Bitcoin's rally, US spot buyers seem hesitant, with many either taking profits or waiting for better entry points. Meanwhile, the Korea Premium Index has dropped into negative territory, signaling that Bitcoin is now trading at a discount on Korean exchanges. This discrepancy suggests continued selling pressure and a general lack of enthusiasm among retail traders in Korea, further confirming the broader sense of caution.

However, Bitcoin's ability to remain above the $110,000 to $115,000 range is still encouraging. Crypto analyst Boris Vest noted that this liquidity battle, where sellers are absorbed around $116,000 and buyers are capped at $120,000, demonstrates a healthy two-sided market. This balance shows that while the market sentiment may be cautious, there is still support for the price within this range, and the market is not experiencing a complete breakdown.

From a technical perspective, a breakout above $120,000 remains a possibility. However, a sweep of the daily fair value gap (FVG) between $115,200 and $112,000 might be necessary to provide the liquidity needed for the next price increase. Moving into this zone could trigger liquidations, potentially setting the stage for a strong rally beyond the current all-time high of $123,100. As price inefficiencies above have largely been filled, this could spark a significant upward move.

For this scenario to materialize, Bitcoin needs to show a strong bullish reaction upon retesting the FVG. A failure to quickly rebound after dipping below recent lows near $115,700 could signal weakening momentum and expose the market to downside risks. The strength and speed of the rebound from this liquidity zone will be crucial in determining whether Bitcoin is on track for a continuation of its rally or if a deeper retracement is likely.

Bitcoin researcher Axel Adler Jr. stated that BTC is still in the growth phase, noting that "market participants continue to support buying activity." He further added, "We haven't reached a stage of excessive optimism yet, and there is still room for further upside toward $139K without significant 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.