- Following over $1B in BTC liquidations, odds favor an upside move—yet $113K–$114K remains the critical resistance zone.
- A wick below the Golden Cross level may still trigger a bullish reaction, but failure risks extending the bearish structure.
The crypto market showed a lot of uncertainty following over $1 billion surge in liquidations stipulated.
The spike in liquidations was after yesterday’s explosive clash involving Elon Musk and Donald Trump. This resulted in Bitcoin [BTC] Futures markets seeing heightened long-position liquidations of over $342 million.
Why are the odds favoring up?
On that note, the Alphractal’s Aggregated Liquidation Heatmap showed strong sell activity between $107K and $114K.
However, $108K and $113K were the main zones to watch for liquidations. Following the drop in the crypto markets, bears forced BTC to fall under $102K.
Importantly, the heatmap showed thinning short-side pressure, suggesting bears may have exhausted their momentum, at least temporarily.
A fall below $99K in BTC could bring it to $93K, which would align the Short-Term Holder Realized Price. This would suggest the possibility of reaching a bottom.
On the flip side, the liquidation of leveraged longs above $100K may have reset the board for bulls. BTC’s ability to find a floor just above $100K hints at a short-term stabilization.
Traders watch $113K closely
That said, most traders are keeping an eye on the $113K–$114K range, since many positions could be closed at that point.
Overcoming this trouble would likely result in more liquidations, which could cause the market to climb further.
However, the uncertainty in the market created by Elon Musk and Donald Trump, over a tax bill and US debt ceiling expansion, may lead to more panic selling.
Trump stressed on Truth Social that he was not fazed by Elon turning against him. In spite of fear, the way the chart and liquidation were organized hinted that the market could be moving upwards.
Bitcoin retesting golden cross
Additionally, BTC also revisited its Golden Cross level, where the 50-day Moving Average crossed the 200-day average on the BTC/DXY chart.
Signals like these used to be associated with bullish reversals, and BTC reacted well to this event in early November 2024.
If BTC fell below $100K but moved back up to this level soon, it could rally once more and try to test $106K, $111K and higher.
If the price did not stay above $99K, it could start moving lower, possibly guiding BTC down to the $97,000–$93,000 range.
As long as Bitcoin holds above $100K and reclaims $103K–$106K, a test of $111K becomes possible. Falling below $99K again would likely shift the bias back to the $97K–$93K range.
