The crypto market is seeing significant liquidations. An abnormal cluster of liquidations near local lows and highs may indicate upcoming sharp movements. Let's analyze the current liquidation data using BTC and ETH as an example and assess the prospects for the coming week.
1. Analysis of current liquidations:
The latest dip in BTC below $66,000 saw large liquidations of LONG positions. These liquidations were the third largest this year, indicating a significant number of traders who could not withstand the decline and were forced to close their positions.
Coinglass charts show accumulation of liquidations above the current price level. This may indicate the presence of liquid zones that traders can use to find profitable entry points into short positions.
2. Current situation on shorts:
From below, the liquidation potential has already been partially exhausted, and now shorts have become active. The data indicates significant accumulations of liquidations in the area above current levels, which may lead to forced closing of shorts when the price rises.
BTC and ETH are moving towards short liquidation zones, and the probability of reaching them in the coming days increases significantly. This creates potential for local growth.
3. Probability of local growth:
Given the accumulated liquidations, short sellers may come under pressure, forcing them to close positions on the rise. Thus, the probability of further growth of BTC and ETH in the coming week becomes higher than the probability of a decline.
Historically, such events lead to short-term rallies as traders look to take advantage of the moment to profit from liquidating shorts.
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Conclusion:
The market is showing signs of readiness for an upward movement. Investors and traders should take into account the current situation and approach trading decisions with caution. Increased buying interest in short liquidation zones may push the market up, which will create favorable conditions for short-term long positions.
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This forecast is based on current liquidation levels and liquidity analysis presented on the charts and can be used as a guide for short-term trading strategies.
