Bitcoin nears $100K as sell walls shrink and shorts face risks

Bitcoin (CRYPTO:BTC) continues its remarkable journey toward the $100,000 mark, fueled by robust market activity and strong investor sentiment. 

On November 22, the cryptocurrency hit $99,500, coming within 1% of the milestone. 

After briefly dipping below $96,000, Bitcoin regained momentum during the Asian trading session, signaling the possibility of a significant breakout. 

"Still seeing limit bids moving higher with underlying spot buyers ~ Positive market signal," observed trader Skew, indicating optimism as Bitcoin approaches resistance near $100,000.  

"Price currently is chewing away at this supply; before, this has preceded a pretty violent breakout," noted trader Skew, highlighting the potential for sharp upward movement once the sell walls are cleared.  

An analysis of Binance’s order book revealed substantial sell orders just below the $100,000 level, underscoring the psychological and technical importance of this threshold. 

Skew also pointed to asks above $100,000 as evidence of bullish market expectations. 

Keith Alan, co-founder of Material Indicators, warned about the risks for traders entering short positions. 

“Shorts are getting lured in,” he said, adding, “If you are taking the bait, be prepared to get squeezed.” 

CoinGlass data showed that short BTC liquidations reached nearly $115 million the previous day, emphasizing the squeeze on bearish positions. 

"The recent surge in spot trading volume ($60 billion) on Binance occurred on November 12. However, trading volume has since decreased by half, while the total crypto market cap enters price discovery mode," noted CryptoQuant contributor Darkfost.  

As Bitcoin edges closer to six figures, traders are closely watching key resistance levels. 

The possibility of a breakout remains, but the market also reflects caution as it navigates this critical juncture. 

At the time of reporting, the Bitcoin (BTC) price was $98,743.72.