Bitcoin done and next target - $96,000⚡️ Hello everyone! Bitcoin reached $110,000 and everyone started celebrating. The market also rebounded slightly. But is everything really that great, and what's next for BTC?
Let's take a look:
Bitcoin is now undergoing a correction after reaching the $110,000 level. The rest of the market looks more buoyant than the first cryptocurrency. ETH is already trading at $2,700, pulling many altcoins with it. Apparently, position fixing in Bitcoin and liquidity spillover into altcoins have begun.
➡️ There is practically no liquidity left at the top. At the $110,000 level, only 100 million shorts were liquidated. According to the liquidation map, if the price drops to $100,000 right now, more than $10 billion in longs will be liquidated!
➡️ Two gaps have also formed below us: 102,800 - 96,990 and 93,310 - 88,470. And as we know, in 99% of cases, gaps close sooner or later.
⚙️ Metrics and indicators:
Money Flow - liquidity inflow is still positive overall. However, since May 22, profit-taking has continued and liquidity has been decreasing.
Volume - divergence in volumes. Purchasing power is weakening as prices rise, which means that there is little chance of moving much higher from these levels. There is still a lack of liquidity in the market.
Liquidation Levels - there are two more obvious short stop zones above. But globally, there is now much more liquidity below than above. So if we fail to consolidate above the $108,600 level, the market is likely to go lower.
DSRZ - the nearest strong support level is at 99,800 - 99,900. This is the first zone of potential price reversal back to growth in the event of a correction.
📌 Conclusion:
I continue to say that it is summer now and liquidity in the markets will be decreasing. No matter how good things look now. At the first signs of weakness, positions will be closed instantly. No one wants to spend their vacation days watching the market.
Especially in a market where any news from Trump can cause prices to drop by several percent in the blink of an eye.
⚠️ I see two options:
It will be an exceptional summer. Bitcoin will spend it in the range of 108,000 - 88,000. And in the fall, when everyone expects growth, it will begin to decline. This cycle is already different from others, so I wouldn't be surprised by that.
It will be a standard summer, and by July we will begin a slow and dull correction. To return to growth in the fall.
Write your opinion and have a good week, everyone!
