Bitcoin Price Faces Potential Retracement as Liquidity Targets $117,500 Amid Market Volatility and Rising Altcoin Froth

Key Points

1. Bitcoin (BTC) tested liquidity levels around $117,500, aligning with a liquidity sweep strategy, amid significant liquidations totaling $517 million in 24 hours.

2. Market experts warn of potential further downside pressure for Bitcoin before a possible rebound, with technical indicators suggesting a correction to around $113,000.

3. Altcoin open interest (OI) in derivatives markets surpassed $40 billion, a record high, raising concerns about increased volatility and downside risks.

4. Traders are advised to monitor liquidity levels and technical indicators to navigate the volatile market conditions effectively.

5. Despite short-term retracement risks, the medium-term outlook for Bitcoin remains cautiously optimistic, with some analysts projecting a rebound target near $138,000.