Bitcoin Price Analysis: More Trouble Ahead for BTC if This Support Cracks
Bitcoin has confronted a pointy rejection after sweeping liquidity above a important resistance zone. The worth is now urgent into main help ranges, the place consumers might try and defend the broader uptrend.
Technical Analysis
By Shayan
The Daily Chart
On the each day timeframe, BTC was rejected decisively after sweeping above $117K, triggering a swift selloff into the highlighted help space. The decline pushed the asset barely beneath the 100-day shifting common close to $113K, a degree that has repeatedly served as a market pivot in latest months.
If this zone holds, Bitcoin might stage a rebound towards $117K, however a deeper retracement into the $108K–$110K vary stays extra possible. This space aligns with each the rising trendline and the prior main swing low, making it a important battleground for bulls to defend.
The 4-Hour Chart
The 4-hour construction clearly illustrates the liquidity sweep above $117K, adopted by a breakdown of the ascending trendline, a transparent shift in short-term momentum. The selloff has pushed the worth towards the demand zone round $110K, the place market individuals now face a key resolution level.
A robust bounce right here might reset bullish momentum and maintain the broader construction intact. However, failure to carry $110K would expose the liquidity pool beneath $107K, making it the subsequent possible goal if promoting strain accelerates.
On-chain Analysis
By Shayan
The liquidation heatmap confirms that the latest selloff was pushed by an extended squeeze. As Bitcoin superior into the $117K–$118K zone, extreme lengthy positioning constructed up. Once worth did not maintain above this liquidity cluster, a wave of liquidations was triggered, accelerating the decline.
The cascade cleared leveraged longs and flushed worth into the $110K–$112K area, the place recent liquidity clusters are actually forming. This confirms that the breakout above the swing high was not sustainable, however reasonably a liquidity lure that fueled draw back momentum.
Broadly, the market continues to depend on liquidity occasions to drive sharp strikes. Long squeezes, just like the one simply witnessed, act as catalysts for aggressive corrections. At the identical time, the heatmap highlights resting liquidity beneath present lows, which might entice worth if draw back strain persists.
For bulls, the important thing query is whether or not this purge has sufficiently reset leverage to permit for a extra steady rebound. If demand returns across the $110K base, Bitcoin might try one other restoration leg. Until open curiosity normalizes, nonetheless, the market stays susceptible to additional squeezes and volatility.
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