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Although Bitcoin price action is still holding above the $100,000 price level, the past 24 hours have been highlighted by a 2.5% decline. According to liquidation data from Coinglass, this decline has seen $65.47 million worth of positions liquidated, with the majority ($54.10 million) being long positions.
Crypto analyst Kevin (Kev_Capital_TA) noted a significant range between $96,000 and $111,000, calling it the most pivotal zone on Bitcoin’s liquidation heatmap. This zone could determine the market’s next trajectory after months of back and forth movement trading between this range.
Bitcoin’s Liquidity Heatmap Highlights Key Levels
According to Kevin’s analysis, which he posted on social media platform X, large liquidity blocks dominate the range between $96,000 and $111,000, which has created an important zone for Bitcoin traders to keep an eye on.
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Liquidity heatmaps visualize areas where buy and sell orders accumulate, often serving as potential reversal or breakout points. The presence of significant liquidity in this range suggests that the market could experience heightened volatility once Bitcoin approaches these levels, and inexperienced investors could be caught up in the price action.
The liquidity blocks within this range are highlighted in green in the Bitcoin price chart below. These green zones are high-activity zones that act as a magnet for price action. Notably, the largest liquidity cluster lies near $109,700, slightly above Bitcoin’s current all-time high of $108,786, achieved just three days ago. This proximity to this all-time high means that Bitcoin could undergo another strong price action once it reaches this level. There are many market participants with buy and sell orders here around $109,700.
Bitcoin Needs To Break Above its Prolonged Sideways Trading
Kevin also pointed out Bitcoin’s extended period of sideways trading, which has tested the patience of many investors. He noted that Bitcoin traded sideways for eight months at the end of 2024, followed by a brief surge in price, only to return to another three-month period of low volatility.
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Since then, however, the strong bullish momentum has yet to repeat itself. Although long-term holders may still be in profit, short-term traders are feeling the most strain from the lack of any substantial upward price action.
The first step in repeating bullish momentum would be to break above the upper end of the liquidation zone at $110,000.
If Bitcoin breaches this range, it could trigger a significant rally or sell-off depending on the prevailing sentiment and trading activity within the zone.
However, the lack of liquidity beyond these levels also poses risks, especially below the lower end of the zone. The thinner orders means there isn’t enough hold up liquidity to reject a price breakdown.
At the time of writing, Bitcoin is trading at $102,200, down by 2.8% in the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com
