Bitcoin Liquidity Sweep Signals BTC Recovery
Bitcoin liquidity sweep near key levels triggered rapid liquidations, but rising open interest suggests a potential recovery. The Bitcoin liquidity sweep removed downward orders, forming a clear liquidation zone. After Bitcoin reached a record high of $124,474, traders hunted stop-losses around weekend liquidity pools, sending prices below $115,000. Hyblock’s analysis shows liquidity grabs reinforced thin weekend markets, while open interest spiked as both bulls and trapped bears placed new bets. At the same time, robust institutional demand for BTC and ETH absorbed excess supply. Ethereum unlock events increased on-chain token flow, yet digital asset treasuries (DATs) sustained high buy orders during weekdays. The combination of higher open interest and ongoing institutional buying offers short-term support and paints a bullish picture for Bitcoin. Traders should monitor liquidation zones, order-book liquidity, and open interest to identify key trading opportunities.
Bullish
This report highlights a Bitcoin liquidity sweep that triggered rapid liquidations but was followed by a surge in open interest and sustained institutional demand. Historically, similar stop-loss hunts around key liquidity zones—such as the mid-2021 May correction—led to brief price dips followed by strong rebounds as buyers stepped in. The simultaneous rise in open interest indicates that traders are not unwinding positions but actively positioning for upside, trapping shorts. Combined with fresh inflows from institutional investors, the market displays robust support at current levels. In the short term, this dynamic should reduce volatility during price dips and offer clear entry points at liquidation zones. Over the longer term, steady institutional accumulation and rising open interest typically underpin higher lows and a bullish trend continuation. Therefore, we assess a bullish impact on BTC trading activity and market stability.