Bitcoin is testing the $106,000 level, with traders eyeing potential price moves. Analyst Daan Crypto Trades highlights significant liquidity both above and below the current price. Despite some profit-taking, Glassnode data shows the market has not reached a euphoric phase yet.

 

Bitcoin's price action is actively targeting liquidity just above its current price, with support strengthening. However, market analysis expresses doubts that new highs will be achieved this week.

 

After the Wall Street opening on June 3, Bitcoin re-targeted the $106,000 level, as traders anticipated a potential bullish reversal.

 

 

Bitcoin eyes liquidation clusters as $106,000 returns

 

Data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD reversed the losses observed after the daily close.

 

After briefly dipping below the old all-time highs from late 2024, Bitcoin managed to halt its decline, despite concerns that the $100,000 level might be tested as support.

 

Popular trader Daan Crypto Trades analyzed the market setup and noted the potential for liquidity grabs both above and below the spot price.

 

"There are still a lot of positions built up on both sides," he stated in his latest commentary on X.

 

Profit-taking "euphoria" still absent

 

In recent analysis of profit-taking among Bitcoin holders, on-chain analytics firm Glassnode highlighted how unusual the recent returns have been.

 

"The recent Bitcoin ATH breakout has led to a notable uptick in profits locked in, with the average coin capturing a +16% profit," Glassnode explained in its weekly newsletter, The Week Onchain, accompanied by a chart of the spent output profit ratio (SOPR) metric.

 

"Fewer than 8% of trading days have been more profitable for investors, suggesting that a meaningful transition into profit-taking activity is underway."

 

 

Despite some holders cashing out, Glassnode noted that the market has not yet entered the "euphoric" phase that typically accompanies long-term price peaks.

— AccGn News Team