- The current liquidity data for Bitcoin
shows that there is $806 million worth of short liquidity up to the level of $30,147.
- According to Coinotag analysts, with strong buying reactions, BTC can rise by clearing the liquidity up to the level of $30,147, starting from the level of $28,750.
- It is predicted that BTC can continue its upward trend towards the level of $32,000 by receiving strong buying reactions towards the support of $28,700.
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When examining the current technical price chart and liquidity data of Bitcoin, it can be seen that BTC can continue its upward trend with strong buying reactions, and attention should be paid to important support and resistance levels.
Medium-Term BTC Analysis
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4-Hour BTC/USD Price Chart
When examining the current technical price chart of Bitcoin, it can be seen that the price is moving close to the support zone of $29,000 – $28,700. If the BTC price closes above the support of $28,700 on a 4-hour basis, it can initiate an upward movement towards the level of $32,000. (Don’t forget to visit CoinOtag for more detailed Bitcoin analysis!)
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However, if the BTC price closes below the support of $28,700 on a 4-hour basis, it can continue the downward movement towards the support of $28,200. Liquidity data shows that short trades are predominant from the level of $31,000, and there is $800 million worth of short liquidity at the level of $31,100.
When examining the technical chart of Bitcoin in the 8-hour time frame, it is stated that the levels of $31,100 – $31,300 are seen as resistance zones. If the BTC price continues to stay above the level of $28,700, it can continue its upward movement towards the support range of $31,100 – $31,300.
If Bitcoin Rises to $30,125, There Will Be $800 Million Short Liquidity!
Bitcoin Liquidity Data / Source: KINGFISHER
When examining the current liquidity data of Bitcoin, it is observed that there is $806 million worth of short liquidity up to the level of $30,147. According to Coinotag analysts, it is predicted that Bitcoin can initiate an upward movement by clearing the liquidity up to the level of $30,147 with strong buying reactions starting from the level of $28,750.
It is stated that there is a total of $70 million worth of long liquidity up to the nearest support level of $28,700 for Bitcoin. When all long and short liquidity data are examined, it is believed that BTC can initiate an upward movement without even dropping to the support of $28,700.
Furthermore, when examining the two-way liquidity data of Bitcoin, it is stated that if the BTC price drops to the levels of $25,400, there will be a total of $436 million worth of long trade liquidity, but if the BTC price rises from these levels and only experiences a $1,000 increase, there will be more than $800 million worth of short trade liquidity.
What is Liquidity in the Stock Market? What Does It Mean to Be Liquidated?
In leveraged markets, “liquidation” refers to the automatic closure of open positions when the investor’s positions fall below a certain level. When trading in leveraged markets, investors can open positions larger than their own capital. This can increase potential profits but also increase the risk of equal losses.
Liquidity is an important issue for risk management in leveraged markets. Investors trading in leveraged markets trade through margin accounts and determine a “margin level.” The margin level indicates the available margin in relation to the total value of the investor’s open positions.
For example, if an investor has $1,000 in their account and is trading with a leverage of 1:100, the investor can open a position worth $100,000 ($1,000 x 100 leverage). If the usable margin in the account falls below a certain level due to the loss of this position, liquidation occurs and causes the loss of the money in the account.