Key Points:
BTC technical charts indicate further downside, but traders still hope for a short squeeze around $98,000, expecting to reverse the current bearish trend.
Since November 3, BTC has declined in sync with the overall crypto market, dropping to $88,267 on Thursday, marking a six-month low. With key economic data set to be released on Thursday and Friday, the market may experience significant volatility in the coming days, pushing BTC prices to critical levels.
The latest round of BTC pullbacks has caused BTC/USD to lose several key support levels, including the 50-week exponential moving average (EMA) around $100,000 and the year-to-date opening price of $93,300.
This has led market participants to have differing views on whether the bull market has ended or if BTC is forming a bottom.
Private wealth management firm Swissblock notes that BTC is currently hovering around $90,000, indicating that the price has reached a "cycle-level weak state."
The accompanying chart shows that BTC price momentum has dropped to levels seen after the market crashes in March and on October 10.
"This is precisely the area for bottom building," Swissblock points out, adding:
Glassnode analysts have expressed similar views, stating that the area between $95,000 and $97,000, where the current short-term holders' (STH) cost basis is at -1 standard deviation, "is acting as local resistance," and further noted:
According to analysis from Daan Crypto Trades, BTC needs to turn the local high of $94,000 into a support level to "break the current downtrend."
According to Glassnode's cost basis heatmap, this is a key demand area, with over 290,300 BTC purchased in this region.
Multiple traders are closely monitoring liquidity grabs around $98,000, with the latest data from market monitoring platform CoinGlass showing that liquidity around $92,000 is being consumed. There are over $2.1 billion in sell orders between $96,600 and $98,500.
If the $98,000 level is breached, it could trigger a short squeeze pushing the price to $100,000. BTC trader AlphaBTC stated on the X platform that this is an "attractive target area above the consolidation zone from early November," referring to the range between $100,000 and $104,000.
AlphaBTC further pointed out:
As reported by Cointelegraph, the U.S. spot Bitcoin ETF recorded $75 million in inflows on Wednesday, ending a previous five-day streak of outflows, suggesting that the BTC market has begun to show early signs of stabilization.
Related: Analyst: Bitcoin (BTC) at $90,000 is a "great opportunity to buy with your eyes closed."
This article does not constitute any investment advice or recommendation. All investment and trading activities carry risks, and readers should conduct their own research before making decisions.
Original article: “Bitcoin (BTC) Downtrend Accelerates, But Traders Eye Short Liquidity at $100K”
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