Bitcoin liquidation heatmap signals danger: Could BTC drop to $60k ? 🤔

Bitcoin registered a major drop in the last 24 hours as it failed to retest its all-time high, which several expected. However, in the past few hours, BTC has somewhat consolidated near $66.

Let’s have a look at Bitcoin liquidation heatmap to find out its upcoming targets.

Bitcoin’s recent downfall:

CoinMarketCap’s data revealed that BTC’s price dropped by over 4% in the last 24 hours. At the time of writing, the king coin was getting comfortable near $66k with a market capitalization of over $1.31 trillion.

IntoTheBlock’s data revealed that despite the recent setback, BTC’s number of long-term holders (addresses holding BTC for more than 1 year) was increasing. 

CryptoQuant’s data revealed that its binary CDD was green. This meant that long-term holders’ movement in the last seven days was lower than the average. They have a motive to hold their coins.

Another bullish metric was the funding rate, which increased. However, not everything was in BTC’s favor.

For instance, as per Coinglass’ data, BTC’s long/short ratio registered a massive dip.

A drop in the market suggested that there are more short positions in the market than long positions. This indicated that bearish sentiment around the king of cryptos has increased.

The technical indicator MACD also had a similar reading as it displayed the possibility of a bearish crossover.

Nonetheless, the Bollinger Bands revealed that BTC was about to test its 20-day Simple Moving Average . Bitcoin might as well manage to successfully test the support as the Chaikin Money Flow (CMF) registered an uptick.

If the bear rally continues, then it won’t be surprising for BTC to drop to $65k first as liquidation would rise. A further plummet under that might push BTC down to near the $60k range

However, in case of a trend reversal, BTC might reclaim $68k before it eyes at retesting its ATH.

If BTC manages to retest its ATH, then it would be interesting to see whether it can go above that.