Bitcoin Signals Point to a Potential Rise to $105K

Bitcoin is currently trading around $97,000, recording a slight decline over the past 24 hours. The Futures market with highly leveraged positions has created a barrier that makes it difficult for BTC to break out to higher levels.

However, price drops and liquidations are necessary to build a sustainable long-term uptrend. In just one day, the total value of liquidations in the Bitcoin market reached $1.7 billion, mainly from highly leveraged long and short positions around the $100,000 mark.

December 5 saw strong volatility as the price moved between major liquidity zones. In total, around $1.1 billion worth of positions were liquidated in the BTC market. On the 12-hour chart, Bitcoin has returned to near mid-term support at around $95,800. From there, the price has shown signs of recovery, indicating that selling pressure is gradually easing.

Analysis of the liquidation heatmap over the past month shows that large liquidity clusters have been wiped out in the past ten days. In late November and early December, the attractive price of $100,000 triggered a liquidity hunt, pushing the price up to $104,000.

Read more: Microsoft Refuses to Buy Bitcoin as Reserve Asset

Shortly thereafter, the bearish correction to the $90,500 support level on November 26 wiped out another important liquidity zone. Zooming in on the heatmap over the past two weeks, it can be seen that liquidity is concentrated around $105,000 more densely than at the current price. In addition, the liquidity zone at $102,000 is also considered a notable target.

Therefore, the possibility of Bitcoin moving up to the $102,000 and $105,000 thresholds in the near future is considered very high.