In this thread, I'll take you through a detailed analysis of liquidity across several key cryptocurrencies, focusing on their current market structures and potential price movements. Let’s dive in!
1. $BTC – Bitcoin
The heatmap from 10 hours ago offers valuable insights into Bitcoin's liquidity zones. Yesterday, I charted Bitcoin's liquidity to demonstrate how price interacts with these areas. Here are the three main liquidity zones:
- $68,000 - $66,000: Bitcoin is currently in a bearish structure on the higher time frames (HTF). If it fails to maintain $66,000, we could see further downside.
- Next Major Liquidity Area: $60,000 – This is the next significant area where liquidity is concentrated, which could act as support if the price continues to drop.
2. $ETH – Ethereum
Ethereum currently exhibits a bullish structure, characterized by higher highs (HH) and higher lows (HL) on lower time frames (LTF).
- Support: $2,900 is the current support level.
- Entry Zone: I would look to enter long positions between $3,300 and $3,600.
- Next Resistance: If Ethereum breaks above $3,300 on the LTF, we could see a continuation towards the next liquidity area.
3. $ADA – Cardano
Cardano's liquidity is mostly positioned below the current resistance level.
- Breakout Potential: Once $ADA breaks through the current resistance, it could target the $0.70 area.
- Caution: I wouldn’t recommend taking long positions until Cardano clears the current resistance.
- Support Levels: $0,40 and $0,45 are currently acting as strong support zones.
4. $BNB – Binance Coin
Binance Coin stands out as one of the most bullish altcoins in today’s market.
- Bullish Structure: On LTF, $BNB is consistently forming higher lows (HL) and higher highs (HH).
- Entry Strategy: Rather than longing immediately, I would wait to see how $BNB reacts at resistance.
- Accumulation Opportunity: $BNB is a solid candidate for accumulation during Bitcoin corrections.
5. $MATIC – Polygon
MATIC is nearing resistance, but I observe a bearish trend after resistance is hit.
- Liquidity Retest: $MATIC has already retested the liquidity above but is now in retracement mode.
- Liquidity Target: There is untapped liquidity around $0.70 that could be a target.
- Support Level: The current support is at $0.65.
6. $DOGE – Dogecoin
Dogecoin is interesting at the current levels, particularly if it holds the $0.15 support.
- Support: $0.15 is a crucial level to hold.
- Breakout Target: If $DOGE breaks the resistance at $0.165, we could see a move towards $0.20.
- Liquidity Pools: The liquidity areas on $DOGE are quite clear, and these are the zones to watch when trading.
7. $AVAX – Avalanche
Avalanche is in the midst of retracing after hitting resistance and taking out liquidity.
- Support Zones: $36 should ideally hold as support; if it doesn't, $34 is the next area to watch.
- Trade Strategy: After hitting resistance and grabbing liquidity, avoid taking long positions. Wait for a clear retracement or confirmation of support.
This concludes the liquidity analysis for $BTC and these six altcoins. Remember, understanding liquidity and how price interacts with these zones is crucial in crafting successful trading strategies. Stay vigilant and trade smart!
