The short liquidity of Bitcoin (BTC) around $96,500 has reached a liquidation critical point, which is quite similar to the situation when it broke through $85,000 earlier.
However, the liquidity gap between $97,000 and $98,000 has not been fully repaired, making $96,500 face relatively high liquidation risk in the short term. Whether it can further touch the liquidation area above $98,000 remains uncertain.
From the market projections, there are two possible trends:
First, after the macroeconomic data is released, the price may experience sharp fluctuations, quickly liquidating short positions above $96,500, and then entering a correction, returning to the current range. The subsequent rebound strength needs to be assessed in conjunction with the new liquidity distribution before Friday;
Second, if the macro data is interpreted negatively by the market, the price may skip the short liquidation at $96,500 and drop directly. If bullish liquidity grows moderately and the overall leverage is controllable, there is still a chance to rise again to liquidate the shorts at that price level after a correction.
It is noteworthy that Wednesday's small non-farm payroll and GDP data, along with Friday's large non-farm payroll and unemployment rate report, are expected to trigger significant market fluctuations, and there may even be a 'paint door' scenario where it rises first and then falls. Investors should remain cautious.
