- Bitcoin has been hovering just above the long liquidity clusters for some time now.
- The liquidity levels coincided with previous week levels, which serve as high RR opportunities.
Recent analysis showed that Bitcoin [BTC] has been persistently lingering above key liquidity clusters, notably around the $94,400 to $95,500 range, with potential peaks near $100,100 and between $102,700 and $103,200.
This positioning suggested that BTC was closely tied to these liquidity zones, which are crucial for potential bullish or bearish shifts.
If BTC descends to sweep the longs in these pools, it could trigger selling, propelling BTC towards lower liquidity at $94,400-$95,500.
This could result in a sharp downturn as holders look to mitigate losses by liquidating positions, especially if the price fails to hold above these levels.
Source: Hyblock Capital
Conversely, maintaining above these liquidity points or bouncing off them could signal strength and potential for an uptrend, possibly challenging the upper resistance near $103,200.
Stability or a bounce from these BTC liquidity clusters could reinforce buyer confidence, leading to a sustained price increase.
These highlighted that while the proximity to these liquidity clusters presented a risk of downtrend.
What the weekly key levels say
Additional analysis showed BTC over the past week reached to established previous week levels, which often became focal points. The weekly low, marked as pwLow at $96,028, repeatedly acted as a strong support zone.
Each time Bitcoin approached this level, it resulted in rebounds, suggesting a significant accumulation of buy orders at this threshold.
Currently, BTC is retesting the $96,028 support level. The repeated tests of this support level without a significant break lower may indicate underlying strength and potential for an upward move if the support holds firm.
Source: Hyblock Capital
Conversely, a break below this level could lead to a decline towards lower support levels, possibly resulting in increased selling pressure as stops are triggered.
Trading activity centered around key levels, with last week’s open at $102,560 and high at $106,450 serving as potential resistance zones.
A sustained move above these levels could confirm a bullish outlook, targeting higher resistances. However, there’s risk of further declines if this crucial support is breached.
Buying opportunity for Bitcoin
However, BTC Profit/Loss Margin revealed traders had maintained a slight profit margin of 0.21%, indicating cautious optimism rather than outright bullish sentiment.
This aligned with the historical trend where buying opportunities emerge during substantial losses, typically around -12%.
This presents more favorable buying conditions for BTC. Conversely, the Taker Buy Sell Ratio from BitMEX showed an uptick in buying, contrasting the cautious sentiment indicated by the Profit/Loss Margin.
Source: CryptoQuant
Read Bitcoin’s [BTC] Price Prediction 2025–2026
This dynamic surge may indicate growing buying momentum, potentially raising Bitcoin prices if it continues, especially if it surpasses major resistance levels.
A brief spike could lead to a correction if buying pressure declines. If buying pressure wanes and more traders face losses, BTC could drop.
