Bitcoin has been in a state of stalemate, with prices fluctuating within a narrow range of $106,000 to $107,000 over the past week. This lack of significant movement has left the market in a state of indecision, with no clear direction for the leading cryptocurrency. The current price range has been marked by liquidation traps on both sides, making it difficult for traders to predict the next significant move.
Renowned crypto analyst KillaXBT has highlighted the key liquidation zones in the present Bitcoin market structure. According to the analyst, Bitcoin is currently trapped between long and short liquidation zones in both low and high time frames. On the 7-day chart, there are accumulations of long positions between $103,400 and $106,000. This data suggests that a move below this price range could trigger cascading stop-losses and force liquidations, sending Bitcoin prices lower in a short-term decline. On the other hand, there are also liquidity clusters in the $108,000–$109,000 region, indicating the presence of potentially significant short positions. A breakout above $109,000 could initiate a sharp short squeeze, perhaps driving prices higher toward the current all-time high in the $111,000 price range.
Using the 30-day chart, KillaXBT provides more information on the Bitcoin market stalemate. The analyst notes that more short-side liquidations are clustered between $108,300 and $109,000 than long-side liquidations between $103,000 and $106,000. However, the presence of short positions at $111,000 presents a scenario where bulls could reclaim control if they successfully push past this upper resistance. Ultimately, KillaXBT concludes the current BTC market structure suggests a delicate balance with high-leverage positions stacked both above and below current prices. The market expert warns that traders refrain from engaging the market until the highlighted liquidation zones are tested.
At the time of writing, Bitcoin is trading at $107,451, after a slight 0.41% gain in the past day. Meanwhile, the asset’s daily trading volume is down by a staggering 36.12% suggesting a fall in market participation. Despite this drop in on-chain activity, exchange outflows of $310 million suggest a strong market confidence, as investors increasingly move their assets into private wallets, typically a sign of long-term holding intent.
