Bitcoin Tests Range Lows After Sweeping Local Liquidity

Bitcoin is hovering near the lower boundary of its established trading range after a sharp move down that swept local liquidity. This move is often viewed as a liquidity grab. If volatility returns, BTC’s next move could define its short-term trajectory.

Liquidity Grab or Breakdown? What The Price Action Signals

Popular trader and analyst Daan Crypto Trades noted on X that Bitcoin is testing its lower range and has swept through local liquidity levels. This move is often interpreted as a potential setup for a reversal.

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The BTC sell-off appears to be heavily influenced by Galaxy Digital, which has reportedly transferred over $2 billion worth of BTC to exchanges to sell. These movements are believed to be part of the same 80,000 BTC whale wallet that has been distributing coins over the past few weeks, which is disrupting market momentum.

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However, BTC price momentum has noticeably stalled since those coins started moving, and the market is struggling to regain upward traction. A breakdown from this current trading range could send BTC to retest the $113,500 level next, which may serve as a key area of interest for buyers. This level could be decent to look for if the price does reach this range.

Furthermore, BTC remains within its range, and if the selling of more coins accelerates, maintaining the $113.500 support could be difficult.

Non-Stop BTC Dumps From Galaxy Digital Raise Market Concerns

Analyst Ether Wizz has also highlighted a significant development in the crypto market that Galaxy Digital has been dumping BTC non-stop. This has been a notable driver in recent market dynamics. Just today, Galaxy Digital has offloaded 12,850 BTC, worth $1.5 billion on exchanges.

This sell-off has driven the price below the $115,000 mark, while BTC is now trying to stabilize, and traders are looking to see if further downside pressure will follow.

However, the last time Galaxy Digital dumped BTC, it marked the beginning of an altcoin rally shortly afterward. If history repeats, this heavy sell-off could set the stage for renewed momentum in the altcoin. 

While analysts are waiting for volatility to be over, Vishal Techzone also stated on X, suggesting that a deeper market correction is coming as Galaxy Digital has just moved nearly 30,000 BTC, worth $3.5 billion, which went straight to the exchanges. This massive on-chain activity is raising serious concerns across the crypto market and sparking fears of a potential deeper correction.

After the trades, Galaxy Digital withdrew $1.15 billion in USDT. Big players like Galaxy don’t shuffle billions for fun. Such activity typically signals strategic planning for the next stage of the market phase.

Featured image from iStock images, chart from tradingview.com

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