Although the recent correction in Bitcoin's price $BTC
has raised some concerns, it is considered a relatively contained shake compared to previous liquidation waves. Despite the price dropping from the $110,000 range to around $103,000, as of the publication time, liquidations on major trading platforms like Binance remained noticeably dominant, with no long-term positions over $200 million being canceled.
This indicates a more planned correction, rather than a panic-induced massive sell-off. Technically, Bitcoin is now trading near its 100-day moving average after dropping below its 50-day exponential moving average. Bulls and bears will engage in a short-term battle at these levels.
The 200-day exponential moving average, or $98,000, is the next important support level if Bitcoin cannot hold above $103,000. If selling pressure eases, a rebound may occur. A clear liquidity gap can be observed between $105,000 and $103,000 by examining the Coin,,Glass chart and heat map. Sellers quickly exploited this area as a strong downward movement replaced the thin order books.
Interestingly, the red-shaded box shows a sharp increase in short-term trading volume and a decrease in open positions, indicating the liquidation of long-term leveraged buy positions, albeit not catastrophically. The overall lesson? This was not a historically long pressure. Instead, after weeks of volatile price movements, we may be witnessing a market reassessment.
The absence of significant liquidations indicates that investors are less willing to take risks and that leverage has not yet reached dangerously high levels. Unless a fundamental catalyst emerges, the price of Bitcoin may continue to stabilize between $98,000 and $105,000 in the future. For now, the market seems to be absorbing the decline without completely collapsing, but any prolonged drop below $100,000 may signal a more serious test of sentiment.
One encouraging indicator is the absence of sharp liquidations. Despite the pressure on Bitcoin, the market is still operating within the usual volatility limits, allowing traders a chance to stabilize before the next big move.
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