Bitcoin’s weekly close must reach this level above $108,000 to avoid wasting the essential “demand area.”

Key points:

• According to evaluation, Bitcoin can maintain the bull market range if it reclaims the $108,400 mark in the approaching hours.

• Volatility increases heading into the weekly close as thin order books record $200 million in 24-hour liquidations.

• Altcoin futures show the losses traders have suffered because the last bottom of the bear market.

Bitcoin (BTC) caused volatility at Sunday's weekly close as the worth approached a key recovery level.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Traders expect BTC prices to fluctuate much more

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local highs of $108,260.

After a painful end to the TradFi trading week that saw Bitcoin fall below $104,000, sell-side pressure gave the impression to be easing ahead of what X trader Daan Crypto Trades described as an “interesting week.”

“Volatility is certainly high here because the books are thin after this massive market rise,” he wrote.

Looking on the liquidation data, Daan Crypto Trades predicted that volatility would proceed “for some time.”

“The books are thin. Especially after the huge liquidation last week,” he added.

“Combined with the weekend price motion and plenty of emotional traders, this leads to relatively volatile moves over short time frames.”Bitcoin liquidation heatmap. Source: CoinGlass

The latest figures from monitoring resource CoinGlass put total crypto liquidations within the 24 hours to the time of writing at greater than $200 million.

Both bid and ask liquidity condensed around the worth within the exchange's order books a number of hours before the weekly close.

“Bitcoin shouldn’t be removed from reaching a positive weekly close above $108,381 to keep up the historical weekly demand area (orange), despite the bearish wicks below,” said trader and analyst Rekt Capital while uploading the weekly chart to X.

BTC/USD 1-week chart. Source: Rekt Capital/X

Altcoin futures explain the gloomy crypto sentiment

According to data from the Crypto Fear & Greed Index, relief from further downside was enough to lift crypto market sentiment out of the “extreme fear” zone.

The index hit 29/100 on Sunday, seven points above the six-month low recorded a number of days earlier.

Crypto Fear and Greed Index (screenshot). Source: Alternative.me

In his commentary, crypto trader and analyst Luke Martin, host of the STACKS podcast, called altcoins a significant drag on overall market sentiment.

In an X post on Saturday, Martin uploaded a chart showing the performance of Binance's top 50 altcoin futures. The chart was created by Chris Jack, Chief Growth Officer of algorithmic crypto trading firm Robuxio.

“This chart perfectly illustrates why sentiment is bearish/drained although BTC continues to be above $100,000,” he argued.

“A basket of the highest 50 altcoins is now trading BELOW where they were after the FTX crash in 2022.”Binance Futures Top 50 Altcoins Overall Performance. Source: Luke Martin/X

Martin pointed to the implosion of crypto exchange FTX, which famously triggered a significant market decline and set crypto up for the bear market bottom in late 2022.

This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision.