Bitcoin price fell 2% in low-liquidity conditions as the US Labor Day holiday saw $80,000 once again slip from bulls’ grasp.
Bitcoin (BTC) drifted lower on Monday as a low-liquidity environment erased the weekend’s gains above $80,000.
Data from TradingView showed BTC/USD down nearly 2% on the day at the time of writing. This price action comes after its first weekly close above $80,000 since early May.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
With US markets closed for the Labor Day holiday, thinner order books increased the chances of sudden moves to target liquidity both above and below the spot price. Data from CoinGlass showed liquidations evenly split between long and short positions over the past 24 hours, with the cross-crypto total at $178 million.
Crypto liquidation history (screenshot). Source: CoinGlass
Liquidity thickened over the course of Monday, with concentrations at $80,500 and $78,800 providing nearby short-term targets.
Crypto liquidation heatmap. Source: CoinGlass
In comments, trading company QCP Capital flagged declining overall volatility, suggesting that traders required external catalysts. These are due in the form of US inflation data on Thursday and Friday, which is likely to impact market expectations for interest-rate hikes by the Federal Reserve.
“Near-term volatility compression, despite approaching catalysts, reflects a market waiting for clarity rather than pricing in strong directional views,” QCP wrote in its latest analysis. It added that the “market is positioned for a directional break once the inflation data arrives.”
Despite moving in a confined range since Aug. 21, BTC/USD offered bullish signals and held the majority of its 25% gains from earlier last month.
Related: Here’s what happened in crypto today
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