Bitcoin is preparing to absorb liquidity up to 111,000 dollars

Analysts warn that Bitcoin traders may face a new wave of losses as BTC prices fluctuate in an increasingly unpredictable "sawtooth" pattern.

According to the latest order book data from the monitoring platform CoinGlass, the market is setting up ideal conditions for the next "liquidity squeeze", with a potential target of up to 111,000 dollars.

Liquidity Sets Up a Price Showdown for Bitcoin

So far, Bitcoin has maintained the $105,000 mark after a strong recovery from several weeks' lows, thanks to the ceasefire in the Middle East.

However, when the price action of BTC is in a consolidation phase, liquidity on both sides of the spot price increases. Traditionally, this often leads to a sudden move to neutralize that liquidity – an event commonly referred to as "liquidity squeeze."

"I wouldn't be surprised if BTC rises a bit to the $107,000 area before reversing and sweeping liquidity below the $105,000–$104,000 area with a quick candle wick," trader and renowned analyst Mark Cullen shared on X on June 25.

BTC liquidation map 24 hours | Source: CoinGlassAt the time of writing, the $108,000 mark is also becoming the new target as liquidity is added near all-time highs (ATH).

From a long-term perspective, trader Jelle notes that the liquidity above — especially around the current ATH region — becomes more significant compared to the liquidity below the price, increasing the likelihood of a subsequent rally.

"The level of $111,000 seems to be very ready as the next target," he commented while discussing data from CoinGlass.

BTC liquidation map 1 month | Source: CoinGlassMeanwhile, trader Skew marks $103,000 as the "key" threshold in the event of a liquidity crunch in the downward direction.

"Currently, the market is quite neutral in terms of position — Long orders are opened with expectations of price increase, while Short orders are opened for hedging. The more liquidity is drawn to this area, the stronger the reaction will be," a part of his latest analysis on X stated.

Analysts warn of the important monthly candle closing level of the price of Bitcoin

Liquidity conditions are currently signaling the potential for strong volatility ahead of a series of important macroeconomic data from the U.S. and the month-end closing.

As reported, the U.S. will announce the Federal Reserve's "preferred" inflation index on June 27, amid signals that officials may be more open to the possibility of cutting interest rates next month.

!()https://img-cdn.gateio.im/webp-social/moments-75adf8fe1f4f20707902b76d57a13c86.webp[bitcoin]Monthly profit of BTC | Source: CoinGlassWith a total increase of 1.7% in June, the monthly close will have significant meaning, according to trader and analyst Rekt Capital.

"If the monthly candle closes above around ~$102,400 (green), that will confirm a breakout from the monthly trading range," he wrote on X along with the analysis chart on June 24.

!()https://img-cdn.gateio.im/webp-social/moments-d79402eb0e34a627b89b9bff3df7e0a3.webp[bitcoin]BTC price chart 1 month | Source: Rekt CapitalMinh Anh