- Liquidity remained concentrated above and below the current Bitcoin price, placing the asset in a tight trading range.
- Whales and derivative traders are placing bullish bets on Bitcoin, contributing to the current momentum.
In the last 24 hours, Bitcoin [BTC] has turned positive, reclaiming the $106,000 level following a 2% market gain.
Analysis suggests the asset could soon make a major run, as both spot and derivative investors continue to buy in large volumes.
AMBCrypto’s analysis also identifies a fractal pattern, indicating that a new all-time high could be on the horizon.
Liquidity squeeze traps Bitcoin
A CoinGlass report revealed that Bitcoin is currently trading in a “liquidity sandwich”—a condition where liquidity clusters sit both above and below the asset’s price.
Liquidity clusters are price levels with a high concentration of unfilled market orders. These levels act like magnets, drawing price toward them.
Source: CoinGlass
In Bitcoin’s current case, the upper cluster lies around $107,000, and the lower one sits near $104,000. This positioning puts Bitcoin in a tight spot, where a breakout or breakdown could occur.
To determine the likely direction, AMBCrypto analyzed whale and spot trading activity.
A new all-time high on the horizon?
At press time, Bitcoin Futures Retail Activity through the Trading Frequency chart revealed key market behavior. This indicator measures how actively retail investors are trading Bitcoin futures, visualized through a green bubble.
AMBCrypto found that during the last two instances when these bubbles formed, Bitcoin experienced significant rallies and reached new all-time highs.
Source: CryptoQuant
The same trajectory may repeat, as broader market sentiment increasingly aligns with a bullish breakout.
Spot trading analysis using the Spot Exchange Whale Ratio shows a notable surge, with the metric reading 0.6.
While this figure confirms heightened whale activity, it does not, on its own, indicate a bullish or bearish outlook. However, the recent price gain suggests this activity leans bullish.
Source: CryptoQuant
Whales—addresses or investors holding substantial liquidity—can influence prices significantly when they decide to buy or sell.
Can Bitcoin sustain momentum to new highs?
The Bitcoin Net Unrealized Profit and Loss (NUPL) ratio was above the 0.5 region, signaling that most investors are in profit.
At press time, the metric had dropped slightly to 0.551. This decline indicates that although investors are in profit, they remain unwilling to sell and are likely to continue holding.
Source: CryptoQuant
If this trend persists, and Bitcoin holders maintain their positions, the asset could make a strong move upward, potentially setting a new all-time high.
