Bitcoin is testing $100,000 support, with price action showing signs of forming a higher low.
Liquidity herding games are impacting short-term price movements, creating challenges for traders.
On-chain data suggests a bottoming phase for Bitcoin, with reduced speculative selling and the potential for a rally.
RSI indicators show strength and could indicate a potential price rebound.
Positive news or a shift in market sentiment could trigger Bitcoin’s next big rally.
As of the latest data, Bitcoin’s price is testing the $100,000 support level once again, with bulls hoping for a higher low to signal the next upward movement.
The price has recently retreated near the $99,000 mark, but Bitcoin’s long-term potential remains a topic of intense debate.
Bitcoin’s current price movement has been characterized by a phenomenon known as a “liquidity herding game.”
Traders are pushing prices around key liquidity zones, particularly near the $100K level, in what appears to be an attempt to influence short-term price fluctuations.
According to Material Indicators, there was a significant $57 million worth of BTC liquidity around the $99K mark, providing a form of “plunge protection.”
BTC/USDT Order-Book Data
Source: Material Indicators
However, there’s skepticism around whether these liquidity levels will hold, as some traders fear that prices could still drop further before a reversal.
BTC Liquidation Statistics:
24-hour crypto long liquidations exceeded $700 million.
$57 million of liquidity on bid orders at $99,000.
Market sentiment: Mixed, with traders waiting for price action confirmation.
Bitcoin is widely believed to be in the “bottoming phase,” according to on-chain analytics platform CryptoQuant. This phase typically occurs when selling pressure starts to fade, and the market prepares for a potential rally.
Moreover, data from CoinGlass put 24-hour crypto long liquidations at over $700 million at the time of writing.
Total Crypto Liquidations
Source: CoinGlass
The data suggests that while Bitcoin’s short-term outlook may be bearish, long-term accumulation and reduced speculative selling could set the stage for a price recovery.
Key Indicators to Watch:
Cumulative Volume Delta (CVD): The CVD for Bitcoin futures has shown signs of fading speculative selling.
Relative Strength Index (RSI): Bitcoin’s RSI is beginning to show signs of strength, signaling a potential rebound from oversold levels.
In the words of CryptoQuant’s contributor Sunny Mom, “speculative selling pressure is fading, and with a bit of positive news, we may see the next rally kick off.”
While Bitcoin’s medium-term outlook appears more promising, short-term volatility remains a challenge. Many traders are still concerned about the possibility of Bitcoin dropping further before a more decisive move upwards.
According to popular trader CRG, Bitcoin could either be carving out a higher low or it may experience one final dip before staging a recovery.
BTC Price Action:
RSI shows potential for a rebound from the oversold zone.
Price is attempting to form a higher low on shorter timeframes.
Liquidity levels near $99,000 provide support but could be tested further.
With Bitcoin stuck around the $100,000 level, what’s next for its price? Analysts agree that Bitcoin could be in the final stages of its bottoming phase.
A bit of positive news or favorable market conditions could spark the next major rally for BTC.
Some key factors to monitor include:
Global Market Trends: Bitcoin often correlates with broader market movements, so economic news or regulatory changes could influence BTC’s price action.
Investor Sentiment: Continued accumulation by institutional investors could provide upward momentum.
Technical Indicators: Watch for a sustained break above key resistance levels for confirmation of the next rally.
Yes, many analysts believe Bitcoin is in a “bottoming phase,” where selling pressure is decreasing, and the price could potentially begin a recovery.
Liquidity herding refers to large traders manipulating price movements by placing substantial orders at key levels, potentially influencing short-term price action.
While Bitcoin is currently testing the $100,000 support, there are concerns that it could drop further before forming a solid base for a rebound.
Positive news, reduced selling pressure, and strong accumulation by institutional investors could trigger the next major rally for Bitcoin.
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