KeyTakeaways:
- Bitcoin’s liquidity clusters around $90K and $105K-$112K could amplify volatility.
- Outflows from exchanges indicate long-term investor confidence in Bitcoin’s price.
- Active addresses surge, signaling growing network interest and potential bullish momentum.
As Bitcoin (BTC) continues its price fluctuation near the $95,000 mark, traders observe key liquidity clusters and a mix of on-chain activity. Recent data highlights critical levels for price action and signals from liquidations, netflows, and address activity, providing valuable insights into Bitcoin’s ongoing price movement.
Bitcoin’s price movements over the last few months have been characterized by significant liquidity clusters, especially around all-time highs. The Binance BTC/USDT liquidation heatmap reveals critical areas where leveraged positions have been aggressively liquidated.
Key zones between $105,000 to $112,000 on the upper side and the $90,000 region on the lower end show high liquidation activity. Bright clusters on the heatmap signal the presence of numerous stop-loss orders and margin calls, which can trigger sharp price moves. These regions could serve as potential magnets for future price action, potentially amplifying volatility.
Spot Netflow Trends Show Outflows
Coinglass data shows a consistent trend of Bitcoin outflows since mid-2023, with a marked reduction in exchange reserves. This data, shown through netflow trends, suggests that Bitcoin is being moved into cold storage, typically seen as a bullish signal.
The outflows, especially since October, coincide with Bitcoin’s climb past $100,000, indicating strong investor confidence despite short-term market fluctuations. Any reversal in these trends, where inflows surpass outflows, may signal a shift in market sentiment, possibly leading to selling pressure.
Active Addresses Point to Increased Network Engagement
On-chain data directly correlates with Bitcoin’s price movements and active addresses. Network activity has surged as Bitcoin approaches the $100,000 level, with daily active addresses frequently exceeding one million.
This uptick in address activity suggests a growing interest in Bitcoin, aligning with past patterns where increased network participation often preceded bullish price action. However, any decline in active addresses could signal a slowdown in momentum, prompting traders to reassess their positions.
Technical Indicators Reflect Bearish Sentiment
Bitcoin’s current price is $96,495.56, recording a minor decline. Technical indicators signal potential downside risk in the short term. The Moving Average Convergence Divergence (MACD) is in a bearish phase, with the MACD line below the signal line indicating downward momentum.
The Relative Strength Index (RSI), at 42.45, also suggests weak buying pressure, indicating that Bitcoin remains in a moderate bearish zone. If BTC fails to reclaim the $98,000 resistance, it may test the $93,000 support level.
