In the dynamic and often opaque world of Bitcoin trading, institutional investors operate according to a fundamentally different playbook. These players actively target areas with low trading volume and under-traded levels, which they view as strategic opportunities to maximize profits.
Institutional traders and large players in the Bitcoin market are constantly seeking out low-volume nodes (LVNs), or areas where trading activity is low. These are sparsely populated zones where fewer limit orders are placed, making it easier to take larger positions without significant slippage (the deviation between the expected price of a trade and the price at which it is actually executed). A crypto analyst on Platform X, known as Killa, noted that these low-volume nodes were being hunted repeatedly during the recent price rally.
The reason for this accumulation is clear: when the Bitcoin price stagnates while the trading volume increases and the market If the price is unable to maintain bullish momentum, this indicates that a retracement (fallback) to lower demand levels can occur 75% of the time. This stems from the fundamental principles of supply and demand at play in the market.
Nevertheless, we see a significant increase in volume around the price levels of the previous peaks, accompanied by multiple liquidity surges above these levels. Despite seemingly bullish indications, the market has failed to rise further. This combination could point to distribution rather than reaccumulation of the trend.
In addition, if Bitcoin If Bitcoin fails to convincingly reclaim the monthly opening level of $114.000, the next logical target lies lower, towards the volume area low (VAL) below $100.000. If Bitcoin falls below $100.000 and then reclaims the VAL, this could signal a deviation into expansion, signifying the recapture of the trading range. Conversely, if Bitcoin fails to reclaim the VAL after testing below $100.000, this indicates a potential bearish market, with a pullback towards $50.000 to $60.000.
A well-known crypto news platform, CryptosRus, reports that Bloomberg has shared recent findings on the lingering effects of the liquidations that took place in October. Bitcoin is back near $107.000, but the cause isn't new fear, uncertainty, and doubt (FUD) or macroeconomic pressure. Instead, traders are still reeling from the October wipeout.
The liquidations have wiped out billions in leverage (leveraged capital), resulting in the biggest breakout the market has seen in years. This has all but depleted confidence, and buyers have remained completely on the sidelines, without taking action. Bloomberg argues that the October shock has deterred new demand, even as global risk assets continue to rise. While Bitcoin's fundamentals are essentially solid, the sentiment is shell-shocked. According to CryptosRus, however, this is not a sign of weakness, but rather a recovery phase.
How can institutional investors benefit from low volume nodes?
By focusing on areas with low trading volume, they can take large positions with less impact on the market, maximizing their profit potential and minimizing losses.
What do the recent liquidations mean for the market?
The liquidations have eroded buyer confidence and pushed the market into recovery mode. As a result, investors should be cautious and wait until sentiment stabilizes.
What price levels are crucial for Bitcoin right now?
$114.000 is a key level; if Bitcoin fails to reclaim it, $100.000 is in its sights. A break below this level could signal a further decline to $50.000 to $60.000.