Bitcoin pulls back below $60,000 as liquidity heatmap outlines next crucial support line

With bitcoin retreating again, analysts are looking for technical indicators and signals that can provide clues as to where it is headed.

On August 12, crypto derivatives data provider CoinGlass reported that the liquidity heatmap shows the key lines of the first test around $56,800.

If BTC prices bounce off this level, it will test the highs, but a weaker bounce could lead to more downside, he noted.

#BTC Liquidity heat map / order book

Try $56800 first, if the bounce is strong, we will try higher levels. If the rebound is weak, we will go to lower price levels.

👉https://t.co/z9WYoWqeVP pic.twitter.com/S72yJNag7v

— CoinGlass (@coinglass_com) August 12, 2024

Bitcoin recovery or more pain?

The liquidation heat map provides a visual representation of potential liquidation levels for leveraged positions in the Bitcoin market. It shows where a large number of stop-loss and liquidation orders are clustered in the market.

CoinGlass currently reports that there have been $156 million in liquidations over the past 24 hours, most of which are in long BTC positions.

If BTC prices fall to these “hot” levels, they could trigger a cascade of liquidation events as leverage is reduced, which would quickly lower prices. That’s what happened last Monday, August 5, when BTC shed $12,000 in less than a day.

It has since rallied to recapture $62,000 by the end of last week, but momentum has waned over the weekend, resulting in a drop to $58,270 in early trade on August 12.

On August 11th, analyst “CrypNuevo” told his 107,000 X followers that the most likely next move is for BTC to fall halfway through last week’s wick, which would take it down to around 53,400 dollars

“I’m not sure what news or event will be the catalyst this time, but it looks like the chart is ahead this time,” they added.

$BTC Sunday Update:

This move is the most likely scenario based on past experience and confluences, in a 1-2 week timeframe.

I’m not sure what news or event will be the cataclysm this time, but it looks like the chart is ahead this time.

Let’s look at the details 🧵👇: pic.twitter.com/tFWRT00dxk

— CrypNuevo 🔨 (@CrypNuevo) August 11, 2024

Bloody altcoins… again

On August 11, MN Capital founder Michaël van de Poppe noted that the altcoin market cap has declined by 60% from its all-time high, while BTC’s market cap is down only 15% as his mastery increased.

Meanwhile, trader and analyst “Mags” observed that the altcoin market cap was retesting the long-term uptrend line.

“Over the past seven years, every time altcoin market cap has tested this support zone, we’ve seen a significant rebound in altcoins,” they added.

#Altcoins Market cap is retesting the long-term uptrend line.

The trend line has served as a strong support zone since 2017.

Over the past seven years, every time the altcoin market cap has tested this support zone, we’ve seen a significant rebound in… pic.twitter.com/wGIcpcwbXd

— Wizards (@thescalpingpro) August 9, 2024

Most altcoins are doing anything but bouncing today with Solana (SOL), Toncoin (TON) and Dogecoin (DOGE) all shedding more than 7%. The rest are a sea of ​​red for now, following their older brother back as usual.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!