Bitcoin Liquidity Increases Amid Price Consolidation

According to Cointelegraph, Bitcoin's order book liquidity is on the rise as the cryptocurrency consolidates its recent relief bounce. Market participants anticipate a liquidity grab that could propel BTC/USD to as high as $111,000. The monthly close is already drawing attention as Bitcoin records modest gains for June. Bitcoin traders face potential losses due to volatile price movements, as analysis suggests. Recent exchange order book data from CoinGlass indicates favorable conditions for a new round of liquidity grabs, potentially reaching $111,000. Bitcoin has maintained the $105,000 level following a rebound from multi-week lows, aided by a ceasefire in the Middle East. As BTC price action consolidates, liquidity on both sides of the spot price is increasing, which traditionally leads to a swift move to neutralize it, often referred to as a liquidity grab. Popular trader and analyst Mark Cullen shared with his followers on X that he wouldn't be surprised to see Bitcoin push slightly higher into the $107,000 range before pulling back and capturing liquidity below $105,000-$104,000 with a quick wick. Cullen uploaded CoinGlass liquidity data, highlighting key price levels where liquidation events are likely to occur. At the time of writing, $108,000 is also emerging as a target due to liquidity being replenished near all-time highs. Zooming out, fellow trader Jelle observed that upside liquidity, particularly around current all-time highs, has become more significant compared to liquidity below the price, increasing the likelihood of a move higher. He suggested that $111,000 appears eager to be tagged next, based on CoinGlass data. Meanwhile, trader Skew identified $103,000 as a pivotal level should a downside liquidity grab occur. He noted that the market is currently neutral in terms of positioning, with longs opening targeting higher and shorts opening as hedges. The more liquidity attracted here, the greater the reaction. Analysts are monitoring liquidity conditions as volatility looms ahead of key U.S. macroeconomic data and the monthly candle close. As Cointelegraph reported, June 27 will see the release of the Federal Reserve’s preferred inflation gauge amid indications that officials may consider an interest-rate cut next month. With BTC/USD overall up 1.7% in June, the exact monthly close level will be significant, according to trader and analyst Rekt Capital. He stated that a monthly close above approximately $102,400 would confirm the monthly range breakout.