Bitcoin (BTC) price liquidations mount after 10-week highs

Bitcoin attacks liquidity clustered close to spot price into the weekly close.

Key points

Bitcoin (BTC) fell toward $95,000 into the May 4 weekly close as traders prepared for more macro-induced crypto price downside.

After 10-week highs, BTC price liquidations were beginning to escalate, Implied volatility also remained elevated despite recent declines.

The Fed’s upcoming interest rate decision was the key macro event to watch next week.

Bitcoin (BTC) fell toward $95,000 as traders prepared for more macro-induced crypto price downside.

BTC price liquidations escalate after 10-week highs

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD retreating from multi-month highs toward the May 4 weekly open.

Hitting liquidity clustered around spot price, Bitcoin created a recipe for volatility as market participants discussed key levels.

“Dense longs cluster 95.7k-96k, heavy shorts 96.5k-97k right around current price (~96.2k),” popular trader TheKingfisher wrote in part of ongoing analysis on X.

The latest data from monitoring resource CoinGlass showed price colliding with buy liquidity, with the majority of asks clustered around $97,200.

Past week also saw multiple liquidity “grabs,” and some saw potential for that behavior to continue as the key $100,000 mark edged closer.

$BTCGap and tap before liquidity grab at $100k is what I’m looking for here https://t.graphio.io/coin/bitcoin

“Positions from $94K–$97K flushed at weekend,” popular trader BitBull summarized.

Assessing the potential for a fresh dip, crypto trader, analyst and entrepreneur Michaël van de Poppe said that BTC/USD had plenty of room to retest support while still maintaining its recent comeback.

“What I’d prefer to see on $BTC is that we’re holding above $91.5-92K,” he told X followers on May 3.

Despite recent strength, crypto trader Ben Gesell saw potential for a steeper correction.

“We’re still in a bear market, and we could see a steeper correction from here,” he warned.

Fed rate cut decision in the spotlight

Expectations of volatility were high heading into the new week, with the US Federal Reserve due to decide on interest rates at 12:00 ET (16:00 GMT) on May 3.

As Cointelegraph reported, the stakes for market sentiment are high ahead of the event. Recession warnings and pressure from President Donald Trump combine with hawkish signals from Fed officials.

The latest data from CME Group’s FedWatch Tool nonetheless maintains minimal odds of a rate cut at the meeting.

“Remind yourself that Crypto & Altcoins have the temper to be correcting in the week prior to the FED meeting,” Van de Poppe added.