On November 22, Bitcoin (BTC) reached a price of nearly $99,500 on Bitstamp, marking an all-time high. The bulls are making progress in eroding the remaining supply below the key $100,000 mark.

BTC/USD 1-Hour Chart

[Image description: BTC/USD 1-hour chart from TradingView]

The latest data from Cointelegraph Markets Pro and TradingView confirms that Bitcoin has been consistently pushing towards new price highs. The recent rebound after a brief dip below $96,000 has set the stage for a potentially explosive move.

Violent Breakout Ahead?

Skew, a well-known trader, predicts that once the price clears ask liquidity near the key $100,000 mark, it could trigger a "violent breakout." Skew’s analysis is based on the observation of limit bids moving higher with underlying spot buyers, which he considers a positive market signal.

According to Skew:

"Still seeing limit bids moving higher with underlying spot buyers ~ Positive market signal.

A lot of aggregate spot supply around $100K. Price currently is chewing away at this supply, before this has preceded a pretty violent breakout."

Liquidity Clusters Around $99,000

An accompanying chart from Skew shows ladders of asks clustered in the upper $99,000 area on the Binance order book. This indicates that there is still significant resistance to overcome before reaching the coveted six-figure mark.

Short Sellers Beware!

Earlier, Skew noted that some traders were tempted to short BTC at current levels, warning them about the potential consequences:

"Shorts are getting lured in… If you are taking the bait, be prepared to get squeezed."

BTC Liquidations Reach $115 Million

CoinGlass data confirms that short liquidations reached just shy of $115 million on the day prior. This suggests that many traders were caught off guard by the sudden price action.

Binance Avoids FOMO Volume Spike

Observing exchange activity, CryptoQuant noted a curious trend regarding Binance’s aggregate trading volume:

"The recent surge in spot trading volume (60B) on Binance occurred on November 12, coinciding with the crypto market cap nearing its previous ATH. However, trading volume has since decreased by half meanwhile the total crypto market cap enters price discovery mode."

This decline in spot trading activity may suggest that the market is taking a breather, with investors exercising caution.

Conclusion

The latest developments indicate that Bitcoin is closing in on $100,000, with bulls making progress in eroding the remaining supply. Skew’s analysis suggests that a violent breakout could occur once the price clears ask liquidity near the key mark. Meanwhile, short sellers are being warned about the potential consequences of their actions.

Investor Caution

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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