Key Points
- Overleveraged positions in the futures market are making it difficult for Bitcoin to break past the $100k mark.
- Liquidations have reached $1.7 billion in a single day for Bitcoin pairs.
Bitcoin, or Bitcoin (BTC), has been struggling to break past the $100k level, despite multiple attempts over the past week.
On Monday, December 9th, a correction was observed, bringing the price down to $94.2k.
High Liquidations
In just one day, the total liquidations for Bitcoin pairs hit a staggering $1.7 billion. This was likely due to a fierce battle in the futures market, with overleveraged longs and shorts around the $100k mark being wiped out.
December 5th was particularly volatile, with the price fluctuating between key liquidity pockets. On this day, nearly $1.1 billion worth of positions were liquidated in the Bitcoin market.
Price Predictions
The 12-hour price chart indicates that Bitcoin is hovering near the mid-range support level at $95.8k. It could potentially drop to the $94k or even $90k levels before the bulls regain control.
Analysis of the 1-month liquidation heatmap shows that high liquidity clusters have been efficiently built and wiped out over the past ten days. This suggests that a retracement toward $90k or lower is possible.
However, the liquidity building around $105k is stronger than at the $90k mark, making a northward move to $102k and $105k slightly more likely. Traders should be prepared for a potential drop to $89k and manage their risk accordingly.
A break of the short-term support at $94k could suggest a deeper drop.
Please note that the information presented does not constitute financial, investment, trading, or other types of advice.