Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
As the price of Bitcoin hovers around $104,000, close to breaking through a crucial psychological threshold, its sharp decline continues. With little structural support left below, concentrated liquidation clusters are visible just below the current price on the most recent CoinGlass BTC/USDT liquidation. heat map.
Digging through liquidity
A lot of dense liquidity that is currently being tested is shown on the heat map between $103,000 and $104,000. The next significant liquidation bands, which are probably stacked with more stop-loss orders and leveraged positions, will emerge between $101,500 and $100,000 if this zone gives way. Given the increase in negative pressure indicated by technical data and on the chain, these levels could only offer short-term stabilization.
BitcoinThe daily structure seems to have become more and more fragile from the point of view of the cards. All of the shorter moving averages (50-day and 100-day) were rolled over, and the price fell below its 200-day moving average, a move that is typically linked to bearish momentum changes.
You may also like it
However Bitcoin is approaching oversold territory, there is still the opportunity for more capitulation before a real reversal setup appears, as indicated by the RSI, which is now hovering around 35. During the sale, the volume increased, indicating that the downside move was well attended.
Sweeping under $100,000
Since there is no obvious horizontal support until the $100,000 mark, it seems likely that there will be a quick liquidity cliff below this mark. In this case, the consolidation zone of the middle of the previous cycle, which is between $97,000 and $98,000, would be the only zone where the next possible support could appear.
The line of $100,000, $101,500 and $103,000 are the important levels for investors to keep an eye on. Without a significant recovery, losing this zone could lead to an accelerated decline, which could be Bitcoin’s biggest decline since the summer rally.
