Bitcoin has remained flat over the past four weeks, finding solid support at $74,000 while consistently facing stiff resistance between $78,000 and $80,000. Despite this tension, the price did manage to climb to an intraday high of $78,164, briefly touching a psychological threshold that prompted the closure of previously opened loss-making positions.
Market activity and liquidity pockets
According to analytics platform Hyblock, a large portion of both long and short positions were liquidated to neutral territory amid today’s price swings. This brought renewed focus to the ongoing battle between buyers in the spot market and sellers active in derivatives. Hyblock analysts highlighted that liquidity has been rapidly accumulating in the $75,675 to $75,700 band. This range features heightened trading volumes and could attract price action in the short run.
Mini glossary: A liquidity pocket refers to a price range where buy or sell orders cluster, increasing the odds of sudden price moves. In crypto markets, these zones often spark short-lived volatility.
Whale accumulation and the TWAP strategy
Blockstream CEO Adam Back revealed on X that an unnamed Bitcoin whale has been steadily accumulating approximately 450 BTC per day using the Time Weighted Average Price (TWAP) strategy for the past eight and a half days. This approach has helped the large investor maintain an average entry cost while preventing excessive price swings during large purchases.
The TWAP method is an algorithmic trading technique designed to break large buy orders into smaller increments over specific time intervals, reducing the risk of dramatic price shifts as a result of high-volume trades. In this way, the buyer can quietly enter the market without causing abrupt price spikes.
Mini glossary: TWAP (Time Weighted Average Price) is a trading strategy used to execute large orders in smaller portions across set intervals, seeking an average price and reducing manipulation, especially where liquidity is limited.
Most investors with long positions closed their trades here by breaking even, while those in short positions exited to lock in gains. As a result, the price frequently pulls back within this range.
Spot and derivatives market dynamics
Recent price volatility has mostly been triggered by aggressive selling in the derivatives market, with steady demand from spot buyers providing a stabilizing effect. This has led to a more solid support for Bitcoin at the $74,000 level. Notably, after crossing $78,000, a concentration of sell orders emerged, often pushing the price back down within this band.
| Price Level | Support/Resistance | Order Concentration |
|---|---|---|
| $74,000 | Support | Strong buying |
| $75,675–$75,700 | Liquidity pocket | Heavy trading |
| $77,700–$80,000 | Resistance | Seller-heavy |
Status of the order book
Order book analysis indicates a concentration of sell orders beginning at $77,700, with demand tapering off notably between $78,000 and $80,000. This suggests Bitcoin is likely to continue struggling within this range in the near term.
Compared to recent surges in US tech stocks, Bitcoin’s latest price action has been more muted. Still, the strong support base is limiting expectations for any sharp downward breaks.
