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The price of Bitcoin (BTC) has been in a holding pattern recently, demonstrating extended sideways movement without significant fluctuations. After experiencing a rapid 11% surge last week, Bitcoin has lost traction and settled back to familiar consolidation levels around $86,000. Crypto analyst Burak Kesmeci points out that Bitcoin is currently positioned between two significant liquidity zones that may trigger a considerable price movement in the near future.
Bitcoin Faces Make-Or-Break At $84k And $87k Liquidation Zones
Burak Kesmeci’s analysis highlights two critical price points for Bitcoin: the $84,849 support level and the $87,043 resistance level. Utilizing a liquidation heatmap, which visually indicates where leveraged positions are at risk of being liquidated, Kesmeci illustrates how these zones play a pivotal role in determining Bitcoin’s next price movement. Dense clusters of liquidity suggest that a great deal of stop-loss orders and liquidation triggers are positioned around these levels, creating potential catalysts for price swings.
Market makers and institutional traders often target these liquidity pockets, as triggering liquidations can lead to price movements that allow them to buy at discounts or sell at premiums. According to Kesmeci, the current 24-hour Bitcoin liquidation heatmap indicates that significant liquidity is currently bound at the $84k and $87k marks, which could mean major shifts in the price of Bitcoin are approaching.
Kesmeci notes that the $87,043 level acts as a crucial resistance point. If Bitcoin breaks above this level, it could trigger a short squeeze, leading traders who have bet against the price to buy back their positions, thus fueling a potential price rally. In this optimistic scenario, Bitcoin might rise to higher targets around $90,000, with further climbs to $94,000 and $99,000 depending on the buying pressure.
Conversely, the $84,849 support level is an essential zone for Bitcoin; a fall below this threshold could trigger substantial liquidations of long positions, amplifying selling pressure across the market. In such an event, Bitcoin might find immediate support around $84,000, but dips to lower levels, such as $83,000 or even $80,000, could also materialize if selling intensifies.
Bitcoin Price Overview
As of this update, Bitcoin is trading at $86,389, reflecting a minor gain of 0.11% in the past day and showing an increase of 0.76% over the last week. However, the cryptocurrency remains down by 10.84% over the past month, leaving many new market entrants facing significant losses. This downward trend is further underscored by a stark 72.39% drop in Bitcoin’s trading volume over the past day, indicating a marked decrease in market participation.
While Kesmeci’s analysis lays out two potential pathways for Bitcoin based on the liquidation heatmap, traders and investors should remain aware that the Bitcoin market could continue to remain range-bound between the identified liquidation zones unless a significant market catalyst arises to prompt a definitive break in either direction.
Featured image from Investopedia, chart from Tradingview
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