The leading currency $BTC
Bitcoin has been in a corrective phase since hitting an all-time high of $111,968 on May 22. The cryptocurrency has fallen below the key support level of $105,000 to trade at $104,536 at the time of writing, reflecting selling pressure.
However, on-chain data suggests a potential rebound above this crucial support level, with a possible retest of Bitcoin's all-time high on the horizon. This analysis provides a breakdown of the key insights.
Bitcoin liquidity pools point to a rise towards $109,000.
An evaluation of the Bitcoin liquidation heatmap shows a significant concentration of liquidity around the $109,933 price area.
Bitcoin liquidation heat map. Source: Coin_glass
Liquidation heat maps identify price levels where large groups of leveraged positions are likely to be liquidated. These maps highlight areas of high liquidity and are often color-coded to show density, with brighter (yellow) areas representing greater liquidation potential.
Typically, these consolidation areas act as a magnet for price action, as the market tends to move towards these areas to trigger liquidations and open new positions.
Therefore, for Bitcoin, the convergence of a large volume of liquidity at the $109,933 price level indicates strong interest from traders in buying or closing short positions at this price, creating room for a rise towards the $109,000 mark.
Furthermore, the coin's funding rate has remained positive despite its recent price decline. At the time of writing, this rate stands at 0.005%.
Bitcoin funding rate. Source: Coining_lass
The financing rate is a periodic payment between traders in perpetual futures contracts to keep the contract price in line with the spot price. When the financing rate is positive, there is higher demand for long positions.
This means that more traders continue to bet on a rise in Bitcoin's price, even in the face of strengthening bearish momentum.
Bitcoin price fluctuates between the $103,000 support and the $109,000 liquidity zone.
Bitcoin posted a modest 1% gain over the past 24 hours, rebounding from the $103,952 support level. If demand picks up, this support level could hold and push prices above the psychological $105,000 barrier, potentially targeting $106,307.
A clean break above this area could open the door to the $109,000 price area, which is crowded with leveraged positions.
Bitcoin price analysis. Source: Tradin_gView
However, increased profit-taking could pull Bitcoin back below $103,952, with a potential further decline towards $102,590.
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