Overview: The Bitcoin (BTC) liquidity chart on Binance over the past 24 hours shows increased buying pressure after a strong liquidity wave, concentrated mainly in the price range around $62,000. The current price is $63,300, up slightly from the peak liquidity period. The total value of liquidity peaked at the time of a sharp price drop, indicating significant market volatility.
$62,000 price zone: This is the price zone that saw the most liquidity, mainly long positions (bets on a price increase). This shows that many traders were expecting Bitcoin to increase but were forced to close their positions when the price fell below the liquidation level. The liquidity peak suggests that the high level of leverage, especially 100x leverage, contributed to the selling pressure.
The short position accumulation line (red-orange) has fallen sharply after the liquidation zone, indicating a decrease in selling pressure. The short-term long position accumulation line (green) has risen sharply after the liquidation zone, indicating an increase in new long positions at higher prices. This is a sign of optimism from some traders, who believe that the price has bottomed and may recover.
The chart clearly shows the impact of using high leverage in trading. Liquid orders are concentrated mainly at high leverage levels (50x, 100x), indicating the high risk that traders take.
Forecast:
Short-term: The Bitcoin market may continue to be volatile in the short term. The slight recovery following strong liquidity coupled with increasing long positions is a positive sign, but we need to monitor trading volume and other technical indicators to confirm the trend. The $63,300 price zone may act as short-term support.
Medium and Long Term: The medium and long term trend depends on many factors, including market sentiment, regulations, macro news, and technological developments. Bitcoin breaking above a key resistance level (e.g. $65,000) could pave the way for a new uptrend. Conversely, if the price fails to hold the $63,300 support zone and continues to decline, it could lead to a retest of the $62,000 zone.
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