EU and US could reach trade deal this weekend - Reuters
U.Today - According to CoinGlass, the $85,800 level remains crucial for Bitcoin price action since much liquidity is concentrated around it.
The significant liquidity around the $85,800 level suggests activity at this point, where traders may have set stop or limit orders. This might result in a scenario where the market moves toward this level to trigger orders and generate momentum.
A liquidity hunt might be watched for, a scenario where the market "flushes out" leveraged positions, particularly longs or traders speculating on price increases. In a separate tweet, CoinGlass pointed out high-leverage liquidity, citing the 24-hour BTC Liquidation Heatmap.
With Bitcoin trading just below this price point, a move toward $85,800 could trigger a bullish breakout if BTC clears the level with significant volume, potentially pushing the price to new highs. Alternatively, it can act as a trap if bears enter to defend the zone, resulting in rejection and a short-term correction.
In any case, $85,800 is shaping up to be an inflection point for Bitcoin’s price, given the significant liquidity at this level.
Bitcoin price action
At press time, BTC was down 0.48% in the last 24 hours to $84,393. Bitcoin fell on Sunday, sliding to $83,010 as investors digested conflicting signals.CryptoQuant examines Bitcoin’s price action using the Perpetual-Spot Gap, which estimates the difference between Binance’s perpetual futures price and the spot price of BTC. It provides a clear picture of trader sentiment: a negative gap frequently indicates caution, while a positive gap suggests increasing optimism.
Currently, the gap is negative, signaling selling pressure on futures markets. However, there is good news: the gap is narrowing. This could be one of the first indications that bearish sentiment might be fading.
However, to determine Bitcoin market direction, traders should consider volume, macro context and other indications.