Bitcoin Price Drops Below $82,700 as Liquidity Hunting Takes Hold
Bitcoin (BTC) took a hit on Monday, falling to its weekly lows as upside momentum gave way to liquidity hunting on exchange order books. The price drop came after over $30 million in ask liquidity was added to exchange order books at around $85,700.
This sudden appearance of ask liquidity often signals a calculated attempt by large traders to influence price direction. As a result, the price of Bitcoin dropped below $82,700 for the first time since September 21. The BTCUSD four-hour chart shows a clear downward trend after this event.
The drop in Bitcoin's price was accompanied by a decline in US stock-market futures and a rise in oil prices. President Donald Trump's refusal to rule out further military strikes on Iran contributed to the overall market volatility, with Nasdaq futures down 0.9% at the time of writing. CFDs on WTI crude oil passed $95 per barrel for the first time since September 24.
Aksel Kibar, a markets commentator, warned that Bitcoin risked returning to its sub-$80,000 range due to hesitant price action. He noted that prior to the drop below $83,000, the performance of Bitcoin did not resemble a 'decisive breakout'. This cautious view is reflected in the BTCUSD one-week chart, which shows the price of Bitcoin stuck within a narrow range.