Bitcoin trades above 120K in a crucial liquidity pool, with concentrated short positions offering potential for near-term price volatility.
Spot market volume remains subdued despite price highs, while a negative OI delta shows more positions closing than opening in recent weeks.
Altcoins are demonstrating stronger relative performance as Bitcoin’s momentum slows, pointing to possible capital rotation in the upcoming trading sessions.
Bitcoin is trading within a key liquidity pool above $120K, facing fragile momentum as spot trading volume weakens and open interest trends turn negative.
Liquidity Pool and Short Position Dynamics
According to market observer Boris, the $120K zone acts as a crucial swap area. The liquidation heatmap shows a heavy concentration of short positions in this price band. Clearing these shorts through upward movement could be a probable short-term outcome.
https://twitter.com/Fundingvest/status/1954575323577602093
However, the possibility of a correction remains present. In such a case, removing these short positions may occur as part of a broader market reset. The current liquidity profile suggests that price action in this region will be closely watched by both long and short traders.
Weak Spot Volume Raises Sustainability Concerns
Despite reaching new price highs, spot trading volume has failed to match the upward momentum. The latest data points to buyer fatigue, as fewer participants engage in spot market buying at elevated levels.
This lower participation rate raises questions about the ability of the rally to maintain its pace. Without stronger spot demand, sustaining upward movement above the $120K liquidity pool could become increasingly challenging.
Open Interest Delta Turns Negative as Altcoins Gain
The 30-day aggregated open interest delta has turned negative. This indicates more positions are being closed than opened, signaling a slowdown in new capital entering Bitcoin derivatives markets. The pace of position growth has diminished despite recent highs.
At the same time, Bitcoin’s momentum has begun to ease, while altcoins show improved relative performance. According to the analysis, Q4 may see Bitcoin trading within a lower-momentum range, with a growing likelihood of upward movement in selected altcoins. This shift in strength could attract more short-term capital away from Bitcoin toward alternative markets.
