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While Bitcoin’s price action is still above the $100,000 price level, the past 24 hours have been marked by a 2.5% decline. According to Coinglass liquidation detailsThis decline resulted in $65.47 million worth of positions being liquidated, the majority ($54.10 million) of which were long positions.
Crypto analyst Kevin (Kev_Capital_TA) noted a significant range between $96,000 and $111,000 and called it the most crucial zone on Bitcoin’s liquidation heatmap. This zone could be determine the next trajectory of the market after months of back and forth movement trading between this range.
Bitcoin’s liquidity heat map highlights the key levels
According to to Kevin’s analysisthat he posted on social media platform
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Liquidity heatmaps visualize areas where buy and sell orders are accumulating and often serve as potential reversal or breakout points. The presence of significant liquidity in this range suggests that the market could experience increased volatility once Bitcoin approaches these levels, and inexperienced investors could become involved in the price action.
The liquidity blocks within this range are highlighted in green in the Bitcoin price chart below. These green zones are high activity zones that act as a magnet for price action. Notably, the largest liquidity cluster is almost $109,700, slightly above that Bitcoin’s current all-time high of $108,786, achieved just three days ago. This closeness to this all-time high means that Bitcoin could see strong price action again once it reaches this level. There are many market participants with buy and sell orders here around $109,700.
Bitcoin needs to break its long-term sideways trade
Kevin also pointed out the extended period of sideways trading in Bitcoin, which has done just that tested the patience of many investors. He noted that Bitcoin traded sideways for eight months in late 2024, followed by a brief price surge, before returning to a three-month period of low volatility.
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However, since then, the strong bullish momentum has continued to repeat itself. While long-term holders can still make profits, short-term traders can feel the most tension due to the absence of any substantial upward price action.
The first step in reiterating the bullish momentum would be to move above the top of the $110,000 liquidation zone.
If Bitcoin breaches this range, it could trigger a significant rally or sell-off depending on the prevailing sentiment and trading activity within the zone.
However, the lack of liquidity above these levels also brings risks, especially below the lower end of the zone. The thinner orders mean there isn’t enough liquidity to reject a price breakdown.
At the time of writing, Bitcoin is trading at $102,200, down 2.8% in the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com