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As October draws to a close, Bitcoin is still trading cautiously in the $113,000-$114,000 range, which is expected to be a battleground for bulls and bears. The price has failed to sustain momentum above important technical levels despite efforts to regain higher ground, and liquidity concentrations on major exchanges indicate that volatility may be on the horizon.
Bitcoin's market placement
From a technical perspective, Bitcoin continues to hold above the 200-day EMA (black line), which is located close to $108,000 and offers solid structural support. As a dynamic resistance ceiling, the 50-day (blue) and 100-day (orange) EMAs are currently holding the price down. This EMA squeeze frequently comes before a big breakout or breakdown, so Bitcoin may make a quick and decisive move next.
Three crucial liquidity zones should be closely monitored, per the Binance BTC/USDT liquidation heatmap.
Three liquidity clusters
$117,000 Upper liquidity cluster: There are a lot of short liquidations in this cluster. If this level is broken, it might lead to a series of short squeezes that could quickly push Bitcoin toward $120,000. Bitcoin has already exhibited hesitancy in the vicinity of this area, indicating that resistance is still strong.
$114,000 Midzone (Current battle area): There are significant pockets of liquidity from both sides of the market in this area. Major players appear to be defending their positions based on the continuous back and forth. Repeated rejections would strengthen bearish dominance, but sustained movement above this zone might restore bullish momentum.
Lower liquidity magnet: There is a significant concentration of lengthy liquidations below the current price of $111,000 and below. Leveraged longs may be flushed out by a decline to this level, which would lead to a more significant correction in the direction of the $108,000 support.
In general, Bitcoin is circling inside a contracting framework, waiting for a catalyst to change course. Because of the close proximity of liquidity clusters between $111,000 and $117,000, traders should expect volatility as the market attempts to find equilibrium. The trend going into November will probably be determined by this week’s close, regardless of whether Bitcoin breaks higher or gives in to bearish pressure.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team