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A price of $106,000 could trigger forced buy-ins and push Bitcoin higher if it breaks above this level.
$108,000 is the key resistance level, and a breakout could signal a significant upward move.
The final liquidity cluster is $111,500-$112,000, where further short squeezes could propel Bitcoin to new highs.
Bitcoin (BTC) has been navigating through a complex period as it hovers around key resistance levels. Traders and investors are closely monitoring specific price points that could either drive the price higher or result in a sharp correction. At the forefront of this crucial moment is Bitcoin’s battle with a long-standing downward resistance trendline just below the $108,000 level. This technical resistance, paired with a closely watched liquidation heatmap, is expected to give insight into Bitcoin’s next move.
BTC’s price action is highly influenced by three critical price points, which serve as battlegrounds between buyers and sellers. These levels represent areas of high-leverage liquidity and have the potential to either trigger sharp price movements or lead to price stagnation.
These levels are not just technical targets; they’re areas where a large number of long and short positions are at risk of being liquidated.
Here are the key levels to watch for the next potential breakout or breakdown:
Bitcoin is currently hovering just above $107,000, but the $106,000 price level stands out as a key area to monitor. Based on CoinGlass’s 24-hour Bitcoin liquidation heatmap, there’s a high concentration of short liquidations just above this level.
Essentially, if Bitcoin climbs convincingly past $106,000, it could trigger a cascade of forced buy-ins from traders who are overly leveraged in short positions.
In other words, a strong breakout above $106,000 could create a buying frenzy, pushing Bitcoin toward higher price targets. This price level has shown potential for liquidating short positions, leading to a sharp upward move.
Moving slightly higher, we reach the $108,000 level, which is critical from both technical and liquidation perspectives. Bitcoin is testing this area as it faces a long-standing downward resistance trendline that intersects around this price range.
This descending trendline has been acting as a ceiling for Bitcoin’s price for quite some time.
If Bitcoin can break above $108,000 with strong volume, it would not only confirm the trendline breakout but also signify that the market has absorbed the short liquidations happening below this price.
As the forced buying continues, this breakout could result in a significant move upward, potentially paving the way for Bitcoin to test even higher levels. The price action around $108,000 is a key point of pressure, and it could either push Bitcoin into new highs or cause it to pull back if resistance holds strong.
The final liquidity pocket to watch is located further above, between $111,500 and $112,000. Suppose Bitcoin manages to break through the previous two resistance levels at $106,000 and $108,000. In that case, this higher zone will likely act as a magnet for more liquidations, especially for the remaining short positions.
The $111,500 - $112,000 range has been observed as the upper resistance band earlier this month, and it aligns with several previous attempts to push higher in Bitcoin’s recent price action.
The dynamics around this level will be critical. A breakout above this zone could trigger a massive short squeeze, pushing Bitcoin to new highs and possibly creating a new bullish trend.
However, if the price fails to breach this level and is rejected, it could lead to a consolidation phase or even a sharp pullback to lower levels.
Also Read: Bitcoin Price Nears $107,800: Can Bulls Push BTC Past $112,000?
The chart shows the price currently hovering near $107,300, below the $108,000 trendline. Bitcoin has been in a consolidation phase, forming higher lows and attempting to break out of the downward resistance.
The trendline just below $108,000 has been a significant barrier. If Bitcoin manages to break above this level with increasing volume, it would signal that the market is ready for a move toward higher levels.
The resistance near $108,000 is the most critical short-term challenge for Bitcoin.
The RSI is currently at 56.16, showing that Bitcoin is in neutral territory, neither overbought nor oversold. This suggests that Bitcoin has the potential for further upside without being at risk of an immediate correction.
Bitcoin’s price is above its 20-day and 50-day EMAs, which are typically bullish signals. The 200-day EMA, however, remains far below the current price, indicating that the long-term trend is still in a bullish phase; however, significant resistance lies ahead in the short term.
Also Read: Bitcoin May Hit $120K: 4 Reasons a Big Bull Run Could Be Coming
The next crucial move for Bitcoin lies in its ability to break through the $106,000 - $108,000 range. These levels represent key battlegrounds where short and long positions are being aggressively liquidated. A breakout above $108,000 could trigger a significant price rally, pushing Bitcoin toward $111,500-$112,000, where another liquidity pocket is located.
However, if Bitcoin fails to break these resistance levels and is rejected, we may see a consolidation phase or a pullback toward lower levels, potentially around $104,000 or even lower. The next few days will likely be crucial in deciding if Bitcoin can maintain its bullish momentum or if it will face a correction.
