Bitcoin price today surged to $116,181 before retracting below the $115K mark, indicating strong resistance at higher levels. Renowned Analyst Doctor Profit believes that this period of calmness could be a precursor to significant movements, potentially testing the $125K threshold in the near future.
As the Federal Reserve’s rate cut decision looms, traders are left questioning whether Bitcoin will experience a breakout or face another sharp decline.
Bitcoin Faces Strong Resistance at $116,500
Despite attempting to breach the $116,500 resistance level, Bitcoin failed to do so, highlighting the formidable barrier at this price point. Doctor Profit notes that many retail traders entered the market between $117,000 and $122,000, leaving a considerable number of them in a state of loss.
Recent statistics from Coinglass reveal $45 million in liquidations, with $34 million from long positions and approximately $10 million from shorts. Despite the market tension, panic selling has not ensued. Doctor Profit explains that market makers are capitalizing on this behavior by discreetly selling within the $115,000–$125,000 range without drawing excessive attention.
$657M Longs at Risk if BTC Falls Below $114K
Looking forward, the risk remains evident. Coinglass data indicates that Bitcoin witnessed $45 million in liquidations, with long positions accounting for $34 million and shorts for $10 million. Should Bitcoin dip below $114,000, long liquidations could soar to $657 million. On the contrary, a move above $116,000 could trigger short liquidations amounting to $210 million, underscoring the significance of this price range as a crucial battleground.
Whales Dumping, ETF Flows Cooling
Beyond retail pressure, the spotlight shifts to whales in the market. Holders of 1,000–10,000 BTC have offloaded over $13 billion worth of Bitcoin in the past 30 days, selling approximately 116,000 coins. This wave of selling represents the most substantial volume since July 2022, exerting substantial supply pressure on the market.
Conversely, Bitcoin ETF inflows, which once fueled robust demand, have significantly decelerated, averaging a mere 500 BTC per day. Despite a one-day inflow of $642.4 million in September, the overall pace has slowed, making it challenging for fresh capital to absorb the selling pressure from whales.
What Next For Bitcoin?
At present, Bitcoin traders are closely monitoring the $115K level. Doctor Profit advises securing profits above this threshold and exercising caution within the $115K–$125K range. He highlights that a significant amount of liquidity is positioned lower, between $106K and $90K, which could potentially drag prices down if selling pressure intensifies.
From a technical standpoint, Bitcoin has recently broken free from a downtrend prevalent in late August. If buyers step up and propel the price above $116,750 with vigor, the next targets could be $122,200 and subsequently $124,500. However, a dip below $114,400 could pave the way for a descent towards $112,000 or even $108,250.
In conclusion, as the cryptocurrency market navigates through a period of uncertainty and volatility, staying informed and making well-informed decisions is paramount for traders and investors alike. Stay tuned for the latest developments and expert insights to navigate the ever-evolving landscape of cryptocurrencies effectively.