Bitcoin Price Trend and Market Structure Analysis

Current Market Conditions:

Price Trend: The price of Bitcoin has significantly dropped from $111.9K to $106.7K, followed by a rebound above $108.8K, indicating a certain level of technical rebound. Market Structure: The price is supported at $106.7K, indicating active buyer intervention in this area, but encounters selling pressure at $109.5K, leading to a price pullback.

Liquidation Zone Analysis:

Short-term Liquidation Zone:

$109.2K to $110K: This is a key resistance area where sellers may actively defend, causing the price to meet resistance. Above $111K: Exceeding this area may trigger more short-term liquidations, further pushing the price up.

Long-term Liquidation Zone:

$107.2K to $106.5K: This is an important support area where the price may encounter buyer support, slowing down the downward momentum. $106K to $104.5K: This is a larger support area where there may be significant buying interest to prevent further price declines.

Market Sentiment and Trends:

Buyer Intervention: At $106.7K, buyers have heavily intervened, showing strong support, but then encountered selling pressure at $109.5K, leading to a price pullback. SuperTrend Indicator: The current indicator shows red, indicating that the market is still in a downtrend and caution is needed. Key Resistance Level: $109.5K is the current key battleground, and the price performance in this area will determine future trends. If the price breaks through and remains above $110K, bulls may fully regain momentum, and the market trend may improve.

Potential Future Trends:

Bulls Regain Momentum:

If the price successfully breaks through $110K and maintains it, bulls will dominate the market, and the price may continue to rise, with targets possibly above $111K, triggering more buying and short-term liquidations.

Dead Cat Bounce:

If the price fails to break through $110K, it may retrace to below $106K, triggering long-term liquidations, leading to further price declines and the market entering a deeper adjustment period.