Over the past six weeks, Bitcoin liquidity has significantly decreased in both directions. The largest order clusters are located at $112,000 and $120,000, noted the trader known as DaanCrypto.
“Watch these areas, as they often serve as zones of local reversal or magnets when the price approaches them,” the investor noted.
Co-founder of Material Indicators, Keith Alan, suggested that large volumes of liquidity in the order book, including “downside protection” at the $105,000 level, might be a form of price manipulation.
2 Moves don’t make a trend, but FireCharts is showing some behavior in the $BTC order book that has similar characteristics of what we’ve previously seen from “Spoofy the Whale” and “Notorious B.I.D.”
Too soon to make any assumptions, but the influence on price direction will be… pic.twitter.com/sIsBwrgj9n
— Keith Alan (@KAProductions) August 20, 2025
“Two moves don’t make a trend […]. It’s too early to make any assumptions, but the influence on price direction will be the same. Lowering the bid price provokes a drop in quotes. Stay tuned,” he added.
According to analyst TheKingfisher, Bitcoin might “turn red” even more, which would have serious consequences for altcoins.
The $BTC liquidation heatmap shows a notable cluster, likely marking a seller’s footprint from TOF this week. A strong liquidation zone sits at $102,349. Altcoins currently show a balanced skew. We might see a minor retrace aimed at liquidating high-leverage shorts. Momentum… pic.twitter.com/pTz4SvmSDc
— TheKingfisher (@kingfisher_btc) August 20, 2025
A significant liquidation zone is located at $102,349, the expert pointed out. He also expects a minor correction that will liquidate high-leverage shorts.
“Momentum remains stable. However, we may observe gradual cascading exhaustion from block to block. While major cryptocurrencies remain stable, a 5% drop in Bitcoin could trigger a 10–30% drop in altcoins,” TheKingfisher emphasized.
Trader RektCapital noted a positive aspect: a similar type of correction occurred at the same points in the cycle in 2017 and 2021. According to his observations, each pullback preceded a rise to new all-time highs.
One of the most positive things about this current pullback is that this same type of retrace took place at this same moment in the cycle in both 2017 and 2021
In both 2017 and 2021, each of those retraces preceded upside to new All Time Highs$BTC #Crypto #Bitcoin https://t.co/ONprKhpUvs
— Rekt Capital (@rektcapital) August 19, 2025
At the time of writing, the leading cryptocurrency is trading around $113,500, according to CoinGecko. Currently, investors’ main focus is on the release of the July meeting minutes of the FOMC and the speech by Fed Chairman Jerome Powell in Jackson Hole on August 20 and 22, respectively.
“The stakes are high: it is necessary to determine the path of monetary policy while markets balance between reducing inflation and increasing labor market risks,” wrote QCP analysts.
According to the CME FedWatch Tool, traders estimate an 85% probability of a 25 basis point rate cut by the Fed on September 17.
Earlier, K33 Research analysts warned of impending volatility amid the rise of the ETH/BTC ratio to an annual high.