Bitcoin (BTC) enjoyed its weekly dose of volatility late Sunday and rose to about $ 107,000 before deciding back to $ 102,000.

The Crypto market typically experiences a shock in volatility at this time on Sunday as it coincides with the opening of the CME Futures Market, which takes a few moments to calibrate to the lower liquidity 24/7 Crypto Markets.

This weekend was a little different. While on the surface, the price action will fall as a bearish rejection from a key level of resistance that Bitcoin has now failed to break by three attempts. In fact, BTC spiked first at CME, indicating that the price action was led by institutional US dealers as opposed to retailers.

Over the past few months, CME has often opened lower than it closed on Friday, creating a “gorge” on the chart that did not occur this week. As the price whipped around this $ 5,000 range, the move wiped out liquidity on both sides, creating a rather crucial bending point.

Now market depth is up to $ 110,000 minimal compared to limited orders that fores the book down to $ 100,000. This means that any upside -driving force is likely to take out this level and see Bitcoin trade on a new record high.

However, it is worth considering the other side of the coin. It is also conceivable that the action on Sunday night was a typical stop-Loss hunt involving dealers who are targeted at a zone where they want to finish in short positions, creating an impulse in the purchase pressure as short dealers are scorching to buy their position back.

This strategy often takes place next to entry into a larger short position. For example, if a trader wants to map BTC with a risk tolerance of 4%, it would be an advantage to open this position to $ 107,000 with a stop loss to $ 111,280 as opposed to $ 105,000 with a stop of $ 109,200. Astute Traders can secure this entry by assessing levels of liquidity and squeezing short positions for closure, which temporarily lifts the price to an ideal post.

Either way, with liquidity that is now relatively low around record heights, Bitcoin is a news catalyst away from the expected head, and these potentially fresh short positions for $ 107,000 could give the ammunition to any outbreak.