The Bitcoin price has spent the majority of the past seven days consolidating around the $94,000 mark with signs of a break to either side. According to a crypto analyst, Bitcoin’s recent price movements have led to the creation of liquidity blocks observed between the $86,000 to $104,000 range, which raises an equal likelihood of a bounce towards $104,000 or a downside break to $86,000 from the current price.
Massive Liquidity Blocks In Both Directions
Bitcoin’s recent price consolidation has given little to no idea of what to expect from here, with the liquidation heatmap also relaying the same trend. As highlighted by crypto analyst Kevin (@Kev_Capital_TA), Bitcoin’s liquidation heatmap relays massive liquidation blocks from $86,000 to $90,000, all the way to $104,000.
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According to the analyst, these massive liquidation blocks raise the possibility that the Bitcoin price would continue to sweep between these levels and create an up-and-down movement between $86,000 up until $104,000 till the end of the month. However, a break to $86,000 could have a devastating effect on the Bitcoin price. The Bitcoin UTXO Realized Price Distribution (URPD) ATH-Partitioned shows a $12,000 support void below this price point. Therefore, a decline to $86,000 opens up the possibility of a further crash to $75,000.
BItcoin’s price action is likely to continue moving in the $86,000 up until $104,000 trading range and a bullish case will only emerge if Bitcoin eventually breaks above $108,000. This level is important because it serves as Bitcoin’s current price peak. A breakout beyond $108,000 would translate to new all-time highs for the leading cryptocurrency and could pave the way for a more sustained bullish trend.
The analyst also emphasizes the importance of monitoring USDT dominance, which currently stands at 3.7%. Kevin argues that a clean breakdown of USDT dominance is a necessary signal for a more stable and bullish market environment. A consequence of the less USDT dominance is that investors are converting their stablecoins into Bitcoin and other cryptocurrencies.
Logical Approach To The Liquidation Blocks
Kevin noted that the logical approach would be to keep an eye on the market during these predicted up-and-down choppy movements. This approach is even more practical for traders who are more involved in recent trades and current price action.
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On the other hand, traders who have been holding since the bear market lows may find it easier to weather the current volatility, given that the broader bullish outlook projects further price increases throughout 2025.
At the time of writing, Bitcoin is trading at $94,050 and is down by 0.5% and 5.46%, respectively, in the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
