Bitcoin’s liquidation heatmap suggested that BTC might even drop to $60,000 if the bears continue to dominate.
Bitcoin [BTC] has dropped significantly in the previous 24 hours, failing to retest its all-time high, as many expected. However, over the last few hours, BTC has consolidated nearly $66.
Let’s look at the Bitcoin liquidation heatmap to see where it’s headed next.
The recent downfall of Bitcoin:
CoinMarketCap’s data revealed that BTC’s price dropped by over 4% in the last 24 hours. At the time of writing, the king coin was getting comfortable at nearly $66k with a market capitalization of over $1.31 trillion.
AMBCrypto’s look at IntoTheBlock’s data revealed that despite the recent setback, BTC’s number of long-term holders (addresses holding BTC for more than 1 year) was increasing.
AMBCrypto analyzed CryptoQuant’s data and found that its binary CDD was green. This means that long-term holders’ movements during the last seven days were lower than the average. They have a reason to save their coins.
Another positive indicator was the rising funding rate. However, not everything worked in BTC’s favor.
For example, Coinglass data shows that BTC’s long/short ratio has dropped significantly. A dip in the market indicated that the market has more short holdings than long positions.
This indicated that bearish sentiment towards the king of cryptos has intensified.
BTC next targets:
AMBCrypto then examined BTC’s daily chart to determine which direction BTC was heading in the future days. The Relative Strength Index (RSI) moved sideways, indicating a few more days of consolidation.
The technical indicator MACD had a similar reading, indicating the probability of a bearish crossover.
Nonetheless, the Bollinger Bands indicated that Bitcoin (BTC) was set to test its 20-day Simple Moving Average. Bitcoin may have successfully tested the support, as the Chaikin Money Flow (CMF) showed an increase.
We next looked at the Bitcoin liquidation heatmap to determine its next objectives. If the bear rally continues, it is not surprising that BTC will drop to $65k first, as liquidation increases.
A further drop below that level might take Bitcoin down to below $60,000.
Source: AMB Crypto
