$136 million short-term liquidation signals a change in market sentiment, with key resistance levels in focus and Bitcoin showing potential for a breakout.
In particular, Bitcoin (BTC) has shown positive momentum in the past 24 hours, increasing by 2.4% and increasing its value to $92,502.
The price ranged from $90,040.61 to $94,489.84 in 24 hours, showing a strong upward trend despite some volatility. The current market capitalization is $1.85 trillion and the 24-hour trading volume is $52.71 billion, indicating active market activity.
Looking at the 7-day performance, Bitcoin is down 0.1%, but the 14-day performance shows a significant 6.0% increase, reflecting the recent positive sentiment. Bitcoin is down 12.9% over the past month and 4.7% over the past year, indicating a long-term downward trend despite recent price movements.
The current price of Bitcoin is stable around $92,000. Critical resistance test Traders are closely monitoring major price trends for potential breakouts. Will Bitcoin break out?
Bitcoin support and resistance levels
On the technical side, the price is currently located above the middle band of the Bollinger Bands indicator, with the upper band at $94,680.44 and the lower band at $84,758.54. BTC recently tested the upside and formed a potential resistance zone, but has since pulled back toward the middle of the band at $89,758.
Bitcoin daily price chart
A further sustained break above the upper Bollinger Band could signal a break towards the next resistance level at $97,500, while a move below the intermediate band could signal further downward pressure towards the lower band and test the $84,758 liquidity zone.
Additionally, Awesome Oscillator (AO) is currently reading a negative value of -2,048.93, indicating bearish momentum in the market.
However, the bars in the AO histogram turned green throughout December, suggesting that the downward momentum may be weakening and the upward momentum may be gaining strength. If AO reaches positive territory, this could indicate a change in market sentiment and could push Bitcoin towards the next resistance level.
Bitcoin clearing overview
on the other hand, Bitcoin clearing data Provides insight into current market sentiment and trader positioning across various time frames. Looking at the 4-hour and 12-hour settlement data, total settlements are still relatively small: $4.52 million for the 4-hour period and $9.64 million for the 12-hour period.
Bitcoin clearing data
Interestingly, the 4-hour chart shows more short term liquidations ($2.43 Million) than long term liquidations ($2.09 Million), suggesting a recent short squeeze. Over the 12-hour period, long positions ($6.52 million) accounted for a larger portion of the liquidation value compared to short positions ($3.13 million), further indicating bearish market sentiment and the possibility of a liquidation cascade.
The most important data comes from the 24-hour liquidation figures, which total liquidations at a staggering $167.07 million. The majority of this amount, $136.16 million, came from short positions.
However, long positions are also under pressure, with long liquidations totaling $30.91 million. Large, short-term liquidations could signal that there is a good chance the market will reverse once bullish momentum begins to take hold.
