Bitcoin Price Plunge Warning: ‘Predatory’ Traders Target BTC Longs
The **Bitcoin price** recently saw a significant drop. Experts now warn of a potential further **Bitcoin plunge** to $114,000. This comes as “predatory” traders reportedly squeeze long positions. Understanding current market dynamics is crucial for cryptocurrency investors.
Bitcoin Price Action and Initial Correction
Bitcoin (BTC) recently faced a challenging period. It struggled to reclaim the $122,000 mark on Wednesday. This followed a notable 4% drop from its all-time highs. Exchange users are currently betting on fresh **BTC price** volatility. Data from Crypto News Insights Markets Pro and TradingView confirmed this consolidation. The market experienced a snap 4.2% correction the day before. Many analysts had broadly expected this downturn. Despite successive all-time highs, serious upward momentum was absent. Rapidly increasing open interest (OI) on derivatives markets fueled suspicions. This suggested Bitcoin might retrace some of its recent gains. Trader Skew described the initial price action as “very efficient.” He noted low volatility during the correction. However, Skew later highlighted “predatory” behavior by large-volume traders. These traders engaged in spoofing tactics on exchange order books. Such actions involve temporarily holding or lifting prices. They then push the market lower. Meanwhile, liquidity has begun to return to the market overnight. CoinGlass data shows thickening bid-side and ask-side liquidity. Skew believes a “consolidation range” could now form.
Key Support Levels and Potential Bitcoin Plunge Targets
Analysts are now examining potential support levels for BTC/USD. They warn that a reliable local floor could be significantly below current spot prices. Trader ZYN highlighted weak support between $121,000 and $120,000. This suggests that **Bitcoin price** could fall quickly if selling pressure increases. However, ZYN noted a strong buyer cluster around $117,000. Approximately 190,000 BTC were last bought in this range. ZYN used the cost basis of recent buyers to predict demand. This zone typically sees strong buyers defending their entries. New capital also often steps in there. Therefore, $117,000 represents a more robust floor than $121,000.
Material Indicators, a trading resource, also flagged $120,000 as a support level. However, their proprietary signals suggested a stronger bounce foundation at $114,000. This level sits close to Bitcoin’s 50-day simple moving average (SMA). Such technical indicators are crucial in **crypto market analysis**. Crypto trader Michaël van de Poppe offered another perspective. He identified $118,000 as the next potential buy zone. Van de Poppe explained that new all-time highs often prompt profit-taking. He views the current slight pullback as an opportunity. It approaches his personal area of interest for dip buying. These expert opinions underline the ongoing **Bitcoin volatility**.
Understanding Market Liquidity and Trader Behavior
The recent market movements underscore the importance of **market liquidity**. When liquidity is thin, prices can move sharply. The “predatory” trading behavior observed by Skew highlights this vulnerability. Large-volume traders can manipulate order books. They create temporary price shifts. This can trap other traders in unfavorable positions. Therefore, monitoring liquidity levels is vital. A recovery in bid-side and ask-side liquidity, as seen recently, can stabilize the market. However, it does not eliminate the potential for further price swings. Investors should remain cautious. They must conduct thorough research. Every investment and trading move involves risk. This article does not contain investment advice or recommendations.
