Bitcoin Targets $111,000 as Downside Liquidity Absorbed

Bitcoin's downside liquidity has been fully absorbed below the current price, indicating that sell orders at lower price levels have been executed. This absorption of downside liquidity means that there is less resistance to downward price movements, potentially leading to increased volatility on the upside. With this liquidity removed, Bitcoin may target the psychological level of $111,000, a significant milestone that could attract substantial trading activity.

The removal of downside liquidity suggests that the path for Bitcoin to climb higher is now smoother. The $111,000 level is not only a psychological barrier but also a technical one, historically acting as a magnet for traders. With sellers flushed out, this level becomes a realistic next target. Increased derivatives activity and spot volume could serve as catalysts, driving Bitcoin toward this milestone.

Bitcoin's all-time high is around $73,700. For it to surpass this level, sustained buying momentum and improving macro sentiment are crucial. With downside liquidity out of the way, the market is poised for an "upside ignition." If Bitcoin can breach $111,000, it could trigger a wave of FOMO (fear of missing out), leading to a swift rally. However, volatility is inevitable, and traders must manage risk and position size carefully.

Market participants are anticipating a potential surge in Bitcoin's price to $111,000, with growing liquidity indicating heightened volatility. The current price is consolidating within a narrow range, and the increasing liquidity on both sides of the spot price suggests an imminent significant price movement. This "liquidity grab" occurs when the market neutralizes excess liquidity through a sudden price move.

Analysts are monitoring liquidity conditions closely, with some predicting that Bitcoin could push higher into the $107,000 range before pulling back to take liquidity below $105,000 or $104,000. Key price levels, such as $108,000, are becoming targets as liquidity is replenished closer to all-time highs. This suggests that the upside liquidity, especially around current all-time highs, has become more significant relative to that sitting below the price, increasing the odds of a move higher.

Traders are also flagging $103,000 as a pivotal level should a downside liquidity grab occur. The market is currently neutral in terms of positioning, with longs opening targeting higher levels and shorts opening as hedges. The more liquidity that gets attracted to these levels, the greater the reaction is expected to be.

Liquidity conditions are also eyeing volatility ahead of key US macroeconomic data and the monthly candle close. With Bitcoin up 1.7% in June, the exact monthly close level will be telling. A monthly close above approximately $102,400 would confirm the monthly range breakout, according to analysts. This suggests that the market is closely watching the monthly close level as an indicator of future price movements.