The Bitcoin (BTC) market is currently experiencing an extended period of stability, with little notable price movement in the last 24 hours. The leading cryptocurrency has retraced all its gains from a previous 11% surge last week, settling back to earlier consolidation levels around $86,000. Renowned crypto analyst Burak Kesmeci notes that Bitcoin is currently situated between two significant price thresholds, presenting the possibility of a major price shift.
Bitcoin at a Critical Juncture: $84k And $87k Liquidation Levels
Utilizing a liquidation heatmap, Burak Kesmeci has pinpointed two pivotal price levels that could impact Bitcoin’s next trajectory. A liquidation heatmap typically illustrates where leveraged positions—both long and short—are susceptible to liquidation. High-density clusters indicate concentrations of liquidity at specific prices, suggesting many stop-loss and liquidation orders are positioned there.
These regions, abundant in liquidity, frequently prompt price movements as market makers and institutional traders often target these liquidity zones to trigger liquidations, allowing for purchasing at a discount or selling at a premium. According to Burak Kesmeci, the BTC 24-hour liquidation heatmap from CoinGlass reveals that the flagship cryptocurrency currently sits between $84,849 and $87,043, marking two crucial price points for its potential movement.
According to the analysis, $87,043 is acting as a resistance level, indicating that a price break above this mark could initiate a short squeeze as short sellers are compelled to cover their positions at increased prices, thus boosting demand for a price rally. In this optimistic scenario, BTC could potentially ascend to around $90,000, although achieving higher targets at $94,000 and $99,000 will necessitate robust buying pressure.
Conversely, the $84,849 price zone acts as a critical support area; a drop below this level could liquidate a substantial number of long positions, creating considerable selling pressure. Should this happen, BTC might locate immediate support near $84,000; however, it’s plausible for a decline to lower ranges such as $83,000 or $80,000.
Current Bitcoin Price Overview
As of this writing, Bitcoin is priced at $86,389, reflecting a slight gain of 0.11% over the past day and an increase of 0.76% over the last week. However, the leading cryptocurrency is down by 10.84% in the past month, resulting in significant losses for most new market participants.
Additionally, the trading volume in the BTC market has plummeted by 72.39% in the last day, signaling a decrease in market activity. While Burak Kesmeci’s liquidation heatmap analysis indicates two possible scenarios, investors should remain aware that Bitcoin could continue to trade within these liquidation zones unless a substantial market catalyst emerges.
Featured image from Investopedia, chart from Tradingview
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