Arman Shirinyan
Bitcoin’s price performance is ambiguous, but some answer can be found in on-chain metrics
The Bitcoin price has sent some questions about the future of digital gold with a surge at around the $69,000 level, but maybe some answers can be found on the Bitcoin liquidation heat map, with critical levels at $68,300 and $69,800, highlighting their importance for short-term price movements.
From this heat map, clearly, liquidity builds around the prices of $68,300 and $69,800. These correspond to areas where strong buying and selling pressure is focused, making them pivotal for Bitcoin’s next moves. Of course, at the current price levels of $69,000, these could easily act as really strong support and resistance zones that will drive the path of Bitcoin for days to come.
Technically, this is a channel in which Bitcoin has traded, with the 50-day moving average used as good support around the $65,000 area. The RSI above 50 indicates that the bulls have a small advantage, but the market does not show overbuying signs. A balanced RSI points to room for Bitcoin to move in either direction.
This is a very important level because the $68,000 area is a huge support. If price action falls right to that price area, that could actually bring in the buying pressure that supports the price from there. There is a lot of sound liquidity at that level, so it would indicate that a lot of traders have their buy orders set in just expectation of a bounce from that area.
There is an important area of resistance around $69,800. Breaking above it would mean the beginning of an intensive purchasing flow and thus could lead Bitcoin to new highs. The stacking of liquidity at $69,800 signals that most of the sell-side volume is located there, and this is what Bitcoin has to chew through to keep grinding higher.
Nonetheless, the general market sentiment around Bitcoin is still positive, considering the surge in institutional interest and rising adoption. In any case, the short-term view will entirely be a function of how Bitcoin behaves against these crucial levels. Either a bounce off the support of $68,000 or a break above $69,800 would set the stage for the next significant move.