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Bitcoin Eyes Key Liquidity Levels as Market Prepares for Potential Reversal

Bitcoin CFN
  • Bitcoin hovers near a key demand zone; holding support could trigger a rebound, but failure may lead to deeper corrections.
  • Liquidity absorption hints at smart money accumulation, potentially signaling a shift toward bullish momentum.
  • Bearish pressure persists with declining RSI and strong sell volume, raising concerns of further downside before a recovery.

Bitcoin’s price action has been volatile, with market analyst Michaël van de Poppe emphasizing the need for liquidity absorption. He suggests that Bitcoin must clear liquidity levels before a reversal can take place. According to him, the ultimate bottom could range between $83,000 and $87,000 before the market regains strength. Current sentiment leans heavily bearish, making a turnaround more probable.

Bitcoin Tests Key Demand Zone

Bitcoin is trading around $89,277, marking a 2.50% decline. The price has reached a crucial demand zone that previously supported bullish momentum. This green-marked zone has historically attracted significant buying interest. If Bitcoin holds this level, a potential rebound could occur. However, a further drop may lead to testing additional support at $85,327 and $79,743.

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Source: Michael

A liquidity grab seems to be taking place at current levels. This move often signals that smart money is accumulating before a directional shift. If Bitcoin holds, buyers could push the price toward the key resistance zone near $104,087. Breaking this level would confirm a bullish continuation. However, failure to hold support could push Bitcoin toward lower targets, including $71,736 and $64,789.

Market Indicators Suggest Bearish Momentum

Volume analysis indicates stronger activity on the downtrends. This proves heavy selling pressure since Bitcoin cannot hold on. Further, the Relative Strength Index (RSI) continues to fall. A declining RSI tends to show heavy bearish strength, adding to the concern of additional downside risk.

Moreover, Bitcoin’s current price structure shows key higher time frame levels playing a crucial role in market reactions. If bulls step in, Bitcoin could reclaim lost ground, testing major resistance areas. Otherwise, deeper corrections may follow before any meaningful recovery.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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