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After losing the psychological $80,000 level, Bitcoin is currently trading in a very risky structure. Derivatives data now indicates that liquidation zones, rather than organic spot demand, are driving price action. Two dense clusters of high-leverage liquidity that are likely to determine Bitcoin’s next significant move are highlighted in the most recent 24-hour BTC liquidation heatmap.
Rapid squeeze
The first critical zone is located between $79,500 and $80,500, slightly above the price. Given the volume of short liquidations in this band, many traders are poised for additional declines. A short squeeze could be initiated if the price is able to rebound into this region, forcing leveraged bears to close their positions and igniting a swift upward spike.
The second important level is located in the $76,500-$77,000 range, which is below the current price action. Long liquidation levels are concentrated in this area. A move into this band could set off cascading long liquidations, driving the price lower in a quick sell-off if Bitcoin drifts lower or is unable to recover higher resistance.
Things will get interesting
According to short-term data, Bitcoin is about to enter a rocky consolidation phase between these two liquidity pockets. The price is still trading below all of the daily chart’s major moving averages after breaking below an ascending support structure recently. The swift rejection of every recovery attempt demonstrates that sellers maintain control, while buyers find it difficult to gather steam.
During the recent decline below $80,000, trading volume also increased, suggesting panic exits and forced liquidations rather than sound rotation. Despite a brief rebound, the RSI is still weak, indicating persistent bearish pressure.
Bitcoin is probably going to keep fluctuating between liquidity zones under the current configuration until one side is forcibly liquidated. While a decline below $77,000 could lead to another leg down, a sweep above $80,000 could result in a brief rally. The market is currently searching for liquidity rather than trending. Until one of these liquidation clusters is completely cleared, traders should anticipate volatility spikes rather than smooth directional movements.
Arman Shirinyan
Caroline Amosun
Godfrey Benjamin
Yuri Molchan
Gamza Khanzadaev