Is Bitcoin at risk? This group may cause BTC’s price to drop

Bitcoin is facing potential price fluctuations as indicated by the LTH (Long Term Holders) Market Inflation Rate, which suggests an increase in sell pressure. Current on-chain data from Glassnode and sentiment analysis suggest a possible rise to $72,000 followed by a correction. Key liquidity zones identified could either support or resist further price movements, with significant implications if Bitcoin drops below $63,050.

The liquidation heatmap is a crucial tool in predicting Bitcoin's price movement by highlighting key liquidity positions where significant buying or selling activities are likely to occur. These positions, determined by the concentration of liquidity, can either act as resistance or support zones. For instance, the heatmap indicated a magnetic zone at $72,350, suggesting that Bitcoin's price might move towards this level. However, this zone could also serve as a resistance point, potentially leading to a price rejection if reached. Conversely, another significant liquidity area noted at $63,050 could act as a support level, helping to sustain Bitcoin's price during a downturn. If the price falls below this level, it could trigger further declines, with the next potential drop reaching as low as $56,200. Thus, the liquidation heatmap not only forecasts potential price targets but also warns of critical thresholds where price stability might be threatened, thereby influencing trading decisions and market sentiment3.