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Bitcoin’s price has been consolidating around the $94,000 level for most of the last seven days signs of breakdown on both sides. According to a crypto analyst, Bitcoin’s recent price movements have led to liquidity blocks seen in the $86,000 to $104,000 range, increasing the likelihood of a bounce towards $104,000 or minus break up to $86,000 from the current price.
Huge liquidity blockages in both directions
The recent price consolidation in Bitcoin has given no clue as to what to expect in this case, and the liquidation heatmap also reflects the same trend. As he emphasized cryptocurrency analyst Kevin (@Kev_Capital_TA), Bitcoin’s liquidation heat map shows huge liquidation blocks ranging from $86,000 to $90,000, all the way up to $104,000.
According to the analyst, these massive liquidation locks enhance the likelihood that Bitcoin’s price will continue to fluctuate between these levels and cause an up-and-down move from $86,000 to $104,000 by the end of the month. However, a break to $86,000 could have a devastating impact on Bitcoin’s price. Bitcoin UTXO (URPD) realized price distribution by ATH shows no support of $12,000 below this price range. Therefore, a drop to $86,000 opens up the possibility of a further drop to $75,000.
BITcoin price action is likely to continue moving in the $86,000 to $104,000 range, and a bullish scenario will only emerge if Bitcoin ultimately exceeds $108,000. This level is critical because it serves as the current high in Bitcoin’s price. A break above $108,000 would translate into recent all-time highs for the leading cryptocurrency and could pave the way for a more sustained uptrend.
The analyst also emphasizes the importance of monitoring USDT’s dominance, which currently stands at 3.7%. Kevin argues that a clear break in USDT dominance is a necessary signal for a more stable and bullish market environment. The consequence of USDT being less dominant is that investors are swapping their stablecoins for Bitcoin and other cryptocurrencies.
A logical approach to liquidation blocks
Kevin noticed this logical approach would be to watch the market during expected volatile up and down moves. This approach is even more practical for traders who are more involved in recent trades and current price action.
On the other hand, there are investors who are holding on from the lows in a bear market maybe it will be easier to weather the current volatility given the broader, bullish outlook anticipates further price increases throughout 2025.
At the time of writing, Bitcoin is trading at $94,050 and has dropped 0.5% and 5.46% respectively in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com