Bitcoin Price Analysis: BTC Sinks Below Crucial Support – What’s Next?
Bitcoin has damaged under the 100-day transferring common at $113.4K, signaling rising bearish sentiment after the current sell-off. The worth is now consolidating in a essential zone the place demand ranges will dictate the subsequent directional transfer.
Technical Analysis
By Shayan
The Daily Chart
On the day by day timeframe, Bitcoin has dropped beneath the 100-day MA, leaving the value caught between the 100-day ($113K) and 200-day ($104K) transferring averages. This vary usually acts as a “no man’s land,” reflecting indecision till both consumers or sellers reclaim momentum.
The descending channel construction stays intact, suggesting persistent downward stress except bulls can defend the channel’s decrease boundary close to $109K. Holding above this area is crucial to stop deeper assessments towards the 200-day MA and the $100K–$102K demand zone.
Notably, there’s a seen sell-side liquidity pocket under $107K, which might draw the value decrease in a liquidity sweep earlier than any main reversal try unfolds.
The 4-Hour Chart
On the 4-hour timeframe, Bitcoin was rejected aggressively from $117K, triggering a cascade of promoting. The decline has introduced the value right into a bullish flag construction, with BTC now hovering simply above a key demand zone under $110K.
This space is significant for preserving bullish potential. If consumers defend it efficiently, Bitcoin might stage a rebound towards current highs. However, a breakdown right here would doubtless speed up the transfer towards the deeper liquidity pool close to $100K, aligning with the 200-day MA. The subsequent leg will rely upon whether or not demand can face up to continued promote stress or if sellers push the market into recent lows.
Sentiment Analysis
By Shayan
The Binance BTC/USDT liquidation heatmap (2-week view) reveals how current volatility has been liquidity-driven. A considerable cluster of liquidations has shaped above the $117K swing high, the place aggressive promoting pressured longs into liquidation. This band highlights the heavy focus of stop-losses and overleveraged longs that amplified the rejection.
In distinction, the heatmap exhibits no main liquidity clusters under the present worth, implying that sellers could have already exhausted near-term draw back liquidity. With Bitcoin stabilizing round $109K, this absence of draw back targets could briefly restrict additional declines, except recent order stream builds under.
For now, the market stays outlined by this imbalance: the $117K liquidity band overhead acts as a cap the place provide dominates, whereas the $109K demand base should maintain to keep away from a deeper slide towards the $100K zone.
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