Bitcoin's Potential Rebound After $1B Liquidation
Bitcoin's Potential Rebound After $1B Liquidation
The cryptocurrency market experienced considerable volatility following over $1 billion in Bitcoin (BTC) liquidations. This surge in liquidations followed a clash between Elon Musk and Donald Trump, impacting Bitcoin futures markets with over $342 million in long-position liquidations.
Why a Bitcoin Price Rebound is Possible
Alphractal's Aggregated Liquidation Heatmap reveals intense selling pressure between $107,000 and $114,000, with key liquidation zones around $108,000 and $113,000. However, the heatmap also indicates thinning short-side pressure, suggesting bears might be losing momentum. A drop below $99,000 could potentially bring BTC to $93,000, aligning with the Short-Term Holder Realized Price and potentially marking a bottom.
Conversely, the liquidation of leveraged long positions above $100,000 could have reset the market for a bullish move. Bitcoin's ability to find support just above $100,000 hints at short-term stabilization.
Source: Alphractal
Traders Focused on the $113K Resistance
Many traders are closely watching the $113,000–$114,000 range, a potential trigger for further liquidations and a potential price surge. However, the recent uncertainty stemming from the Musk-Trump conflict and concerns about a US tax bill and debt ceiling could lead to more panic selling.
Bitcoin Retests Golden Cross
Bitcoin also revisited its Golden Cross level on the BTC/DXY chart, where the 50-day Moving Average crossed the 200-day Moving Average. While historically associated with bullish reversals (as seen in early November 2024), the outcome remains uncertain.
A rebound above $100,000, potentially reclaiming the $103,000–$106,000 range, could lead to another rally towards $111,000 and beyond. However, failure to stay above $99,000 might push Bitcoin down to the $97,000–$93,000 range.
Source: TradingView
Disclaimer: This analysis does not constitute financial advice. Market conditions are volatile, and investment decisions should be based on thorough research and consideration of individual risk tolerance.