Here’s Why $96,000-$111,000 Is Most Important
Although Bitcoin price action remains above $100,000, it is down 2.5% in the past 24 hours. according to Liquidation data from Coinglassthe decline resulted in the liquidation of $65.47 million worth of positions, the majority of which ($54.1 million) were long positions.
Cryptocurrency analyst Kevin (Kev_Capital_TA) pointed to the price range between $96,000 and $111,000, calling it the most critical area on the Bitcoin liquidation heat map. This area can Determine the market’s next trajectory After several months of trading back and forth between this range.
Bitcoin’s Liquidity Heatmap Highlights Key Levels
according to According to Kevin’s analysisPosting on social media platform
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Liquidity heatmaps visualize areas where buy and sell orders are accumulating, often as potential reversal or breakout points. The presence of significant liquidity in this range suggests that the market may experience greater volatility once Bitcoin approaches these levels, and inexperienced investors may get caught up in the price action.
In the Bitcoin price chart below, liquidity blocks within this range are highlighted in green. These green zones are areas of high activity that can attract price action. Notably, the largest liquidity cluster is located near $109,700, just above Bitcoin’s current all-time high It hit $108,786 just three days ago. Being close to this all-time high means that Bitcoin is likely to experience another strong price move once it reaches this level. There are many market participants here with buy and sell orders around $109,700.
Bitcoin needs to break out of its long-term sideways trading
Kevin also pointed out that Bitcoin has been trading sideways for a long time, Tested the patience of many investors. He noted that Bitcoin traded sideways for eight months in late 2024, before prices briefly surged but returned to another three-month period of low volatility.
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However, strong bullish momentum has yet to be repeated since then. While long-term holders may still profit, short-term traders feel the most pressure Due to the lack of any substantial upward price action.
The first step to repeating the bullish momentum is a break above the liquidation zone cap at $110,000.
If Bitcoin breaks out of this range, it could trigger a sharp rally or sell-off, depending on the prevailing sentiment and trading activity within the area.
However, lack of liquidity Exceeding these levels also carries risks, especially below the lower end of the zone. Decreasing order books means there is not enough liquidity to prevent the price from collapsing.
At the time of writing, Bitcoin is trading at $102,200, down 2.8% in the past 24 hours.
Featured images from Unsplash, charts from Tradingview.com
