Bitcoins [BTC] The price has been consolidating around the $90k zone lately. According to AMBCrypto, this price action had the character of a bottom when zoomed out. In fact, a $3,000 price drop on January 6 resulted in approximately $440 million in liquidations, most of which were long.
Source: MintGlass
CoinGlass data showed that at the time of writing, there were $218.19 million in liquidations in the market in the last 24 hours of trading. Crypto longs accounted for $140.60 million.
Source: CryptoQuant
Over the past 24 hours, Bitcoin has fluctuated between the $89.3k and $91k levels. The recent retest of the $94.5k resistance gave bulls hope for a breakout. Unfortunately, this has not yet been achieved. This would explain the higher amount long liquidations since January 05.
What awaits the crypto longs next?
The altcoin market has shown strength against BTC so far in January – encouraging in the short term. In one message on Xcrypto analyst Maartoen noted that the most recent share price increase of $89.3k was supported by significant capital inflows.
The positive spot CVD should not fool swing traders and investors should not immediately switch to a long-term bullish bias.
Open Interest grew from a low of $54.62 billion to a high of $62.14 billion in January. This growth has stalled over the past 24 hours as BTC was unable to climb past the $92,000 mark.
At the same time, Bitcoin Spot ETFs saw large outflows over the past three days. At the time of printing, Data from Farside Investors showed outflows of $1.128 billion since January 6.
Exploring the key Bitcoin resistance levels overhead
Source: BTC/USDT on TradingView
Finally, the 4-hour chart showed that the $80.6k and $107.5k levels were the swing points of the November price decline. The sideways price action in December caused the $94.5k level to become a local supply zone – a level that has not yet been breached.
Crypto traders looking to go long can be more confident of a bullish outcome if the $94.5k resistance is overcome. The local support zones of $90,000 and $88,000 (cyan) could also provide Bitcoin buying opportunities in the near term.
Final thoughts
- Bitcoin’s recent price action has mainly chased long positions as traders turned bullish following Bitcoin’s price above $90,000.
- Long-term bulls should keep an eye on macroeconomic conditions and Bitcoin demand.