Claim Bonus3 Key Liquidation Levels, 1 Critical Reason Predict Why Bitcoin Price Will Crash Soon
Highlights
- The liquidation heatmap model suggests that Bitcoin price may crash soon, with three key liquidity levels to the downside harboring over $3 million in liquidity.
- The recent 5.01% Bitcoin price rally was driven mostly by perpetual traders, not spot buyers, which implies that the market may be due for a correction.
- The Spot buyer CVD is dropping, indicating that spot buyers are actively selling, which adds credence to a potential bearish reversal for Bitcoin price.
Bitcoin (BTC) rose 5.01% on Wednesday, setting up the daily high at $86,990, ending weeks of consolidation. However, futures data for BTC and liquidation heatmap models suggest this uptrend could come undone soon.
Let’s explore Bitcoin price predictions and key levels to watch as data hints at a bearish reversal.
Bitcoin Price Rose 5%, But a Crash Seems Likely
Bitcoin rose 5.44% on Wednesday, March 19, from a low of $82,501 and set up a daily high of $86,990. This move pushed it to sweep the previous weekly high of $85,270. As long as BTC stays above this level, the bullish outlook will most likely continue, pushing it higher.
However, the liquidation heatmap mode by CoinGlass suggests that this recent price rally may come undone soon. During Wednesday’s price rally, the liquidity to the upside was swept. Now, the heatmap model shows three key liquidity levels to the downside – $85,000, $81,000, and $77,618, respectively. Combined, these three levels harbor more than $3 million in liquidity. If the buyers fail to sustain Bitcoin price above the key support level of $85K to $84, the chances of a sustained downtrend are high.
While the liquidation model may not be enough to ascertain the directional bias, data from Aggr.Trade shows the recent 5.01% Bitcoin price rally was driven mostly by Perpetuals and not Spot buyers. Often, spot buyers tend to be patient with their investments, and perpetual traders are only in the trade to capitalize on short-term moves. As these perpetual traders unwind their long positions, Bitcoin price could crash, undoing the recent move to $87.5K.
Moreover, the Spot buyer CVD is dropping since the peak a few hours ago, showing that spot buyers are actively selling, which adds credence to a potential bearish reversal for Bitcoin price.
With key events such as interest rate decision and Fed’s FOMC meeting behind us, the crypto markets could show its actual intention – up only or more chop?
Frequently Asked Questions (FAQs)
1. What does the liquidation heatmap model suggest about the recent Bitcoin price rally?
2. What drove the recent 5.01% Bitcoin price rally, and what does this imply for the market?
3. What is the significance of the Spot buyer CVD dropping since its peak, and what does this indicate for Bitcoin price?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Related Articles
- Breaking: U.S. CPI Inflation Falls To 4-Year Low Of 2.4%, Bitcoin Rises
- Bitget Launches Gracy AI For Market Insights Amid Crypto Platforms Push For AI Integration
- BlackRock Signals $257M Bitcoin and Ethereum Sell-Off Ahead of Partial U.S. Government Shutdown
- XRP News: Jane Street Emerges Among Key Institutions Driving XRP ETF Inflows
- Bhutan Gov. Dumps More Bitcoin Amid $410M Institutional Sell-Off in BTC ETFs
- Bitcoin Price Outlook As Gold And Silver Lose $3.6 Trillion in Market Value
- XRP and Ethereum Price Prediction as Trump Seeks to Lower Key Tariffs
- Solana Price Prediction as $2.6 Trillion Citi Expands Tokenized Products to SOL
- Bitcoin Price Could Fall to $50,000, Standard Chartered Says — Is a Crash Coming?
- Cardano Price Prediction Ahead of Midnight Mainnet Launch
- Pi Network Price Prediction as Mainnet Upgrade Deadline Nears on Feb 15
