After the significant liquidity dump on August 5, there are no big clusters nearby.
BTC has significant liquidity clusters at the lower high of $70k and the lower low of $47k.
A breakout above the $72,000 level is likely to drive Bitcoin toward a new all-time high.
Bitcoin traders sharply watch possible liquidity zones, especially at lower low and lower high zones. According to data from Coinglass, BTC has lesser large liquidity concentrations in the area after passing through major liquidity points on August 5 and September 16.
Based on the analysis by a crypto trader, Daan Crypto Trades, Binance BTC/USDT has zoomed out by taking out a big liquidity cluster down below the $50k on the August 5th dump. Furthermore, the analyst added that there are few big clusters in close proximity and that the high levels are sitting at $70k lower highs and $47k lower lows.
#Bitcoin Zooming out, we can see how $BTC has taken out a big liquidity cluster down below $50K on that August 5th dump.
Currently, there's not many big clusters in close proximity.
The big levels are sitting at $47K and lower.
But especially at $70K+ after all the lower highs pic.twitter.com/NpUOKzubQQ
— Daan Crypto Trades (@DaanCrypto) September 15, 2024
The yearly BTC/USDT Liquidation Heatmap shows that there are large liquidation clusters at $70,000 and $72,000, and liquidation leverages are $41.51B and $39.86B respectively. If Bitcoin arrives at this level, traders who have leveraged at this level will be liquidated out, making BTC acquire more liquidity and subsequently increase the price.
Conversely, traders are currently holding $1.81B in short positions at $65,000 and $993.4M in long positions at $52,000. If BTC could not surpass the key resistance at $65,000, we could anticipate a substantial drop, with a key support level at $57,000.
Assuming that Bitcoin crosses the resistance level, it will absorb all the short liquidation leverage, resulting in a short-term bullish trend. Furthermore, if it manages to cross the major threshold at $70,000 and $72,000, there is a high possibility that the prices could go further and reach a new all-time high in the range of $80,000.
At the time of publication, Bitcoin is trading at $58,634. It has a one-day Relative Strength Index of 49.80, trading above the RSI-MA, and the Chaikin Money Flow is 0.05. Additionally, the MACD is also above the signal line; all these indicators combined suggest that Bitcoin is likely to experience a bullish trend.
The post BTC Liquidity Zones at $70K & $47K Hold Key to Price Action appeared first on CryptoTale.
