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Although Bitcoin price action is still holding above the $100,000 price level, the past 24 hours have been highlighted by a 2.5% decline. according to Liquidation data from CoinglassThis decline saw positions worth $65.47 million liquidated, most of which ($54.10 million) were long positions.
Cryptocurrency analyst Kevin (Kev_Capital_TA) noticed a large range between $96,000 and $111,000, calling it the most pivotal area in the Bitcoin liquidation heat map. This area can Determine the next path for the market After months of trading back and forth between this range.
Bitcoin liquidity heat map highlights key levels
According to For Kevin’s analysiswhich he posted on the social media platform
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Liquidity heat maps depict areas where buy and sell orders are accumulating, often serving as potential reversal or breakout points. The presence of significant liquidity in this range indicates that the market may face extreme volatility once Bitcoin approaches these levels, and inexperienced investors may get caught up in the price action.
Liquidity blocks within this range are highlighted in green in the Bitcoin price chart below. These green areas are high activity areas that act as magnets for price action. It is worth noting that the largest liquidity pool is located near $109,700, i.e. slightly higher Bitcoin’s current all-time high $108,786 was achieved just three days ago. This proximity to the all-time high means that Bitcoin could undergo another strong price movement once it reaches this level. There are several market participants with buy and sell orders here for around $109,700.
Bitcoin needs to move beyond the level of prolonged sideways trading
Kevin also pointed out the extended period of sideways trading for Bitcoin, which occurred Testing the patience of many investors. He noted that Bitcoin traded sideways for eight months at the end of 2024, followed by a brief rise in price, only to return to another three-month period of low volatility.
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However, since then, the strong upward momentum has yet to repeat itself. Although long-term holders may still make a profit, short-term traders do They feel the most stress There is no significant upward price movement.
The first step in replicating the bullish momentum would be a breakout of the upper border of the liquidation zone at $110,000.
If Bitcoin breaks this range, it could lead to a major rally or a massive sell-off depending on the prevailing sentiment and trading activity within the area.
However, Lack of liquidity Exceeding these levels also poses risks, especially below the lower end of the zone. Fewer orders mean there is not enough liquidity to reject a price collapse.
At the time of writing, Bitcoin is trading at $102,200, down 2.8% over the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com
