Bitcoin (BTC USD) continues to hold above recent levels, crossing the $116,000 mark earlier this week. Currently, the price hovers around $122,000, signaling potential market shifts.
Bitcoin Prices and CME Gaps
As of now, Bitcoin's price hovers around $122,000, reflecting a 2.29% increase over the past 24 hours. The asset has seen a 4.51% gain in the past week, though it remains 2.39% lower compared to last month. Price analysis revealed a CME gap between $117,000 and $119,000, often closing in subsequent trading sessions.
Market and Macro Events
Market watchers are tracking upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) data, which could significantly influence Bitcoin’s price. Analysts expect these reports to potentially cause notable volatility. Historical data shows Bitcoin often rises following such announcements, corroborated by previous instances where the price surged to $122,000 before retreating to $105,000.
Short Liquidation Risks
Current open interest data from Binance, OKX, and Bybit indicates significant short positioning between $118,000 and $121,000. A sustained move above this zone could trigger cascading buy orders, risking up to $14 billion in short liquidations. Additionally, breaking the $125,000 level may accelerate liquidations to $17.6 billion.
Maintaining above the $116,700 level signals Bitcoin's short-term uptrend. However, any breach of these levels alongside CPI and PPI data could trigger corrections, highlighting a very dynamic market situation.
