At this point, Glassnode noted that while $BTC is trading near the $80,000 support level, there are also liquidation zones in the futures market that could trigger sharp price movements both upwards and downwards.
Citing estimated $BTC futures liquidation data based on price ranges over the past two months, Glassnode noted that a large portion of long position liquidations were concentrated below $80,000, with another significant liquidation zone around $75,000.
Glassnode stated that the concentration of long position liquidations below $80,000 poses a significant risk that could accelerate Bitcoin’s decline.
In contrast, Glassnode noted that short liquidations on the upside have accumulated to over $85,000 this week.
Finally, Glassnode added that the downward liquidation zones currently appear more vulnerable than the upper range. In other words, the risk of a sharp downward move being triggered under current market conditions is seen as higher than that of an upward move. Furthermore, crypto analyst Darkfost, using a pseudonym, predicts that the correction in Bitcoin could deepen to $74,600.
According to Elliott Wave theory, the analyst states that the fifth wave of the uptrend has been completed and a correction process may have begun, suggesting that the $74,600 level seems possible. At this point, the analyst said that the decline may continue in the short term, but the uptrend has not yet been broken in the medium term.
*This is not investment advice.
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