Bitcoin Fails to Hit $100,000 as Sell-Side Liquidity Blocks the Way
On November 22, Bitcoin (BTC) faced a significant challenge in reaching the psychological level of $100,000. However, it was not for lack of trying. Data from Cointelegraph Markets Pro and TradingView showed that the BTC price began to decline at the Wall Street open, falling to local lows of under $97,300.
A Trip Towards $100,000 Ends in Defeat
Earlier in the day, Bitcoin had made a strong push towards the key six-figure market. However, it was met with resistance from sellers who lined up to prevent BTC’s price from climbing higher. This is not an uncommon feature for Bitcoin around key psychological levels.
The Role of Sell-Side Liquidity
One of the main reasons why Bitcoin failed to hit $100,000 was due to the presence of a massive sell wall compressed between the $99.3k and $100k range. According to FireCharts, this liquidity is located on the largest global exchange, Binance.
The Power of Sell-Side Liquidity
As shown in the chart below, the $100,000 sell wall clearly stands out against other levels while building in strength over the past few hours.
| Price Range | Liquidity |
| — | — |
| $99.3k – $100k | $300M |
According to Material Indicators, there has been a slight bit of erosion in the last few hours, but it’s still nearly $300 million in liquidity. This is a significant amount that can impact Bitcoin’s price movement.
Accompanying Volume Data
Accompanying volume data shows that sell-side transactions dominated by amounts between $100 and $1,000. Whales are still refraining from mass distribution, which could be contributing to the sell wall’s strength.
| Transaction Range | Volume |
| — | — |
| $100 – $1,000 | Dominant |
A Call for Action
Material Indicators argued that it would actually be good to see whales start dumping blocks of ask liquidity to force BTC into a support test and ultimately make the wall easier to penetrate.
The Impact of Institutional Support
United States spot Bitcoin exchange-traded funds (ETFs) achieved another day of net inflows above $1 billion on November 21, reflecting considerable institutional interest supporting BTC price momentum.
A Potential Downturn
Others considered where a potential deeper price retracement may end up. Popular trader Crypto Chase eyed $90,000 in what he called the "optimal scenario."
| Target Price | Potential Scenario |
| — | — |
| $90,000 | Optimal |
Fellow trader CJ had a higher target focused on the mid-$90,000 range.
| Target Price | Potential Scenario |
| — | — |
| Mid-$90,000 | Higher Target |
Bullish Divergences
Trader Roman noted promising bullish divergences on the four-hour relative strength index (RSI). This fell 10 points on the day, dipping below the key 70 "overbought" level.
| RSI Range | Implication |
| — | — |
| 60 – 70 | Bullish Divergence |
Roman stated that big bull divergences are forming between price and RSI. This should result in trend continuation as a result.
The Road Ahead
With the ETF faucet turned off for the weekend, there could be some dip buying opportunities ahead. As Roman noted, "I think we break 100k today or tomorrow as this entire trend looks very strong."
Disclaimer
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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