Bitcoin (BTC) 
$97,709 and the broader cryptocurrency market experienced a stagnant trend over the past weekend, limiting investor interest. As market participants await upcoming U.S. inflation data, short-term fluctuations in Bitcoin’s price are anticipated. Notably, liquidation levels will play a crucial role in this process, potentially sparking new price movements for the leading cryptocurrency.
Monitor Bitcoin’s Liquidity Levels Closely
Recently, Bitcoin’s price has undergone significant movements due to liquidity accumulation at support levels. During this period, many short positions were liquidated, leading to a rapid recovery from the $94,500 mark, bringing the price to current levels. However, this uptrend may advance toward new liquidation levels, which could lead to a short-term decline.
According to Coinglass data, following the liquidation of approximately $100 million in short positions at $95,000, there is an expectation of $200 million in long position liquidation around the $97,800 level. Potential liquidations at these levels could cause the price to retreat to $95,500. Conversely, technical indicators suggest that if Bitcoin breaks through the $97,800 resistance, the upward trend may gain momentum.
Technical Indicators Suggest Short-Term Correction
The stochastic RSI, used in technical analysis, has reached overbought levels, signaling the potential for a short-term correction. According to this indicator, Bitcoin’s price may experience a decline and could consolidate within a descending triangle formation for a period. During this phase, prices may move within a narrow range up to the peak of the formation.
Additionally, it is noted that the 50-day moving average presents strong resistance at $98,700. If BTC can break this level, it may confirm the beginning of a new upward trend. However, short-term traders should exercise caution before reaching these levels.
Market participants are expected to see Bitcoin move within a narrow range in the coming days. It is advised that traders focus on liquidity fluctuations near the $98,000 mark. Analysts emphasize that if BTC surpasses the $98,700 level, it could attract new buyers, propelling prices to higher levels.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
