Bitcoin's price remains highly volatile, with recent market events leading to significant liquidations. We analyze key factors and possible scenarios.
Recent Bitcoin Market Liquidations
The recent liquidation of highly leveraged positions has intensified market volatility. According to the latest BTC liquidation heatmap, a series of liquidations occurred as Bitcoin failed to maintain upward momentum, wiping out 100x long positions.
Role of the 200-Day Moving Average
Bitcoin was rejected at the 200 EMA, a crucial resistance level. This forced overly leveraged traders out of their positions, causing a sharp price decline. Bitcoin currently trades in the $85,000-$86,000 range.
Potential Bitcoin Market Scenarios
Technical indicators and market sentiment suggest two potential outcomes. Traders anticipate either a recovery toward the $95,000-$100,000 range if Bitcoin surpasses $90,000 or further downside to the liquidity zone around $80,000 with continued selling pressure.
The Bitcoin market remains erratic, and traders should proceed with caution, especially when using high leverage.
