Will Bitcoin Hold at 105K or Fall to 90K Next?

BTC Market Analysis

• Monitoring the 108K–104K Range: The BTC liquidation heatmap indicates significant long liquidations in the 108K–104K zone, where shorts are accumulating. This area has seen a three-month build-up of positions, and traders are advised to look for potential long entries when red zones appear, signaling possible market reversals. Volume-based accumulation is crucial for understanding market dynamics in this range.

• The Significance of Delta Flows: Delta flows reveal the distribution of buy and sell orders, highlighting retail selling activity. This information allows traders to set up opposite positions and manage their exposure effectively. The analysis suggests that aligning delta readings with volume accumulation can enhance decision-making, especially in a market exhibiting slight pessimism.

• The 90K Zone: Potential Capitulation Point: The 90K level is identified as a critical zone for potential capitulation, where a reversal could lead to rapid price increases for traders caught short. Monitoring position closures around 105K is essential to gauge market direction, as a lack of strength at this level may push prices down toward the 90K zone, which could serve as a pivotal area for accumulation and sentiment alignment.

• Strategic Positioning: Traders are encouraged to structure their positions based on observed liquidation patterns and delta flows. Red zones on the heatmap often indicate optimal buying opportunities, and a combined analysis of delta flows and accumulation patterns can provide clearer insights into market shifts. The ongoing analysis emphasizes the importance of tracking these signals to navigate potential price movements effectively.