Bitcoin hits $70K before reversing as $120M liquidations strike and weekly RSI drops to 27.8, its lowest level since June 2022.
Bitcoin traded in a tight range during the US bank holiday, and sharp intraday swings cleared both long and short positions.
BTC liquidity moves as weekly RSI revisits 2022 levels have drawn attention from traders watching for signs of a broader trend shift.
Low-Volume Trading Triggers Liquidity Sweeps
Bitcoin briefly spiked to $70,000 before reversing and returning toward the $67,000 range.
With Wall Street closed, thinner order books made price easier to move. Lower participation often increases short-term volatility and sudden price swings.
Data from CoinGlass showed about $120 million in crypto liquidations within four hours. Both long and short positions were affected during the rapid moves.
Liquidation heatmaps showed clusters of bids and tasks cleared in quick succession.
New sell walls appeared above price as it pulled back from local highs. This added pressure and limited further upside in the short term.
Traders described the moves as liquidity squeezes in a narrow trading band.
Breakouts and Shakeouts Define Short-Term Range
Trading resource Material Indicators referred to the recent action as “breakouts and shakeouts.”
The description reflects brief moves beyond range highs and lows followed by quick reversals. Such behavior can trap traders on both sides of the market.
Trader Daan Crypto Trades wrote, “Volatility is much higher which is something that we also see in pretty much all other markets lately.”
He added that markets are not in a calm period. Historical volatility charts show an uptick in recent sessions.
Another trader, CW, noted that buying pressure appeared stronger than on Sunday.
However, he observed weaker demand on certain exchanges such as OKX. Overall, liquidity conditions remained uneven due to the holiday schedule.
Related Reading: Paris Saint-Germain Embraces BTC for Treasury Strategy
Weekly RSI Revisits 2022 Oversold Territory
Attention has also turned to Bitcoin weekly relative strength index. The weekly RSI fell to 27.8, marking its lowest level since June 2022. Readings below 30 are commonly viewed as oversold.
Material Indicators cofounder Keith Alan compared the current setup with previous cycles.
He said weekly RSI was approaching levels that historically appeared once per cycle. In 2015 and 2018, similar readings coincided with market bottoms.
Alan noted that in 2022, oversold readings preceded months of consolidation. He stated, “This doesn’t mean it has to develop the same way this time, but it’s worth watching closely.”
Traders are now monitoring whether Bitcoin follows prior patterns or diverges from them.
Source: https://www.livebitcoinnews.com/btc-liquidity-moves-as-weekly-rsi-revisits-2022-levels/
