[Analysis] "Bitcoin, the $101,000 level is the turning point"

Uk Jin

Summary

It analyzed that Bitcoin fell below the $107,000 level and that $640,000,000 in long positions were liquidated.
It stated that Bitcoin recently rebounded at the $101,000 level and that this price is likely to become a new important support.
It said that whether the $101,000 level is defended is expected to be the turning point for the market's future direction.

Bitcoin (BTC) surrendered the $107,000 level, which had been regarded as a major support, and fell to $98,000, leading to analysis that the $101,000 level will become a new support.

On the 5th (Korean time), CryptoQuant contributor CryptoOnChain said in a report that "Bitcoin fell to $98,000, leaving the $107,000–$123,000 range it had been in for 130 days," and analyzed that "this collapse liquidated approximately $640,000,000 in long positions in the futures market. This is the second-largest long liquidation since June 2021."

The contributor explained that "liquidations acted as a catalyst that accelerated the decline," and "it then appears to have rebounded to the $101,000 level thanks to an inflow of buying."

The contributor added, "The $101,000 level is an important support where Bitcoin's upward curve and the bottom coincide, and will be an important level to determine the market's future direction. If the $101,000 level is successfully defended, the recent decline can be interpreted as a short-term fluctuation and may act as a buying opportunity. Conversely, if this level is not maintained and the daily close finishes below $101,000, the bullish market structure will break down and a deeper correction is expected."

BTC