Bitcoin's price has bounced back from a ten-day low as traders try to determine a short-term trend amid a "liquidity hunt" following last week's spike to near its all-time high.

Currently, the cryptocurrency is trading relatively steadily at around £67,500 after plunging to a low of £65,160 on Thursday, according to CoinGecko data.

This follows Bitcoin surpassing £69,000 on Sunday; its all-time high, recorded on March 14, is just above £73,700.

Some analysts suggest that this week's downturn may be temporary.$BTC #ScrollOnBinance £

"We don’t interpret this as being directly linked to shifts in U.S. election probabilities, but rather as a natural liquidity hunt following the significant price increase last week," stated Ryan McMillin, chief investment officer at Merkle Tree Capital, in an interview with Decrypt.

A liquidity hunt involves the market "liquidating" leveraged positions, especially those betting on price rises.

When traders are long with leverage, a price reversal can compel them to sell or liquidate their holdings, applying downward pressure on the asset’s price. McMillin indicated that this is seen as a healthy correction, clearing out speculative excess before the market can continue its upward trajectory. $BTC