Bitcoin jumps at $283M in liquidity but spot demand falls
Bitcoin (BTC) was trading between $75,000 and $73,000 during the three-hour opening of the New York market on Thursday, and the sudden move cost futures $283 million. The resulting short squeeze pushed BTC toward $75,000, but sustaining the recovery will require a steady volume of buying in the spot market.
BTC returns amid slow spot demand
The decline from $75,400 to $73,200 triggered a long wave of liquidity in futures markets, which reached a total of $166 million, according to market analyst CryptoRiving.
The price quickly pushed to $75,000 and gained nearly $117 million in short positions, showing a quick two-sided squeeze in the same trading window.
The move was closely followed by liquid spikes, forcing it to close short positions. The funding ratio turned positive to +0.0005 shortly after the decline, indicating that the bearish position was building before it unraveled.
This indicates that the reverse momentum is coming from short exposures rather than new long exposures. The rally cleared nearby pockets of liquidity and pushed the price toward the session's midpoint.
Spot Cumulative Volume Delta (CVD), which tracks net buying and selling in spot markets, has continued to decline during the recovery. Bitcoin is holding above $74,000, but the gap is showing weak spot participation.
To move above the highs of the $76,000 range, spot demand should strengthen alongside traders' activity, lining up both sides of the market behind the price.
RELATED: Bitcoin returns to around $74.5K as US stocks chase new all-time highs
Bitcoin liquidity map describes key inflection points.
Bitcoin continues to move between certain sets of liquidity, with its price gravitating around key levels. According to the analyst Cryptoholder, the $76,000–$78,000 range contains a tight supply zone with $2.81 billion in short-term liquidity, while $74,000 serves as a balance zone.
Liquidity of $2.5 billion in long-term leverage is below $72,000, creating a price magnet if higher levels fail to clear.
Meanwhile, short-term trader behavior also reflects recurring intraday patterns. Bitcoin trader Kila said eight of the past 11 Thursdays have been up. Thursday's session saw a close to 2% decline from the daily open, providing intraday opportunities within that pattern.
Related: Bitcoin bull run ‘still too early' to call as demand drains from capital: Analyst
This article is prepared in accordance with Cointelegraph's Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and transactions involve risk; Readers are encouraged to do independent research before making any decisions. Cointelegraph makes no warranty as to the accuracy or completeness of the information provided, including forward-looking statements, and shall not be liable for any loss or damage arising from reliance on such content.
