Bitcoin's rising liquidations, what does this mean for BTC?
Bitcoin's liquidations have been in the spotlight recently. Bitcoin futures order books are loose, and this price behavior creates a dynamic market environment.
The latest liquidation heat map shows increased activity, which is likely to trigger price movements. Big players were even able to influence the price action from $67.5k to $69.5k, which also indicates volatility in the market.
If Bitcoin fails to stay above the key Fibonacci retracement level, it may test the key support level of 63k. Long-term holders may find support from the moving averages.
It is worth noting that nearly 49,000 BTC were transferred from Bybit to new wallets, which may indicate changes in the market. We need to closely monitor the flow of assets within its team, especially during the liquidation process.
When unrealized profits rise, traders tend to cash out, which increases selling pressure and may even trigger local tops before a pullback.
Currently, the sentiment around Bitcoin has shifted from pessimistic to positive, and there is also a clear shift in bullish sentiment on social media, which has boosted traders' confidence.
However, the Bitcoin market is likely to be volatile in the coming weeks and traders must remain vigilant. The key question is whether Bitcoin will break higher, or face a pullback. Price fluctuations in the liquidation zone are expected to create opportunities for traders.
