Bears in Trouble as Massive Liquidity Cluster Builds Between $72,000-$80,000 ⋆ ZyCrypto

Bitcoin is currently building up a massive liquidity cluster between the $72k-$80k level, and as a result, there is an anticipation that the cryptocurrency can make a short-term recovery. According to data from the analytics website Coinglass, liquidations worth hundreds of billions of dollars lie in the way of bulls, but if past trends are any indication, the upward forces could be in for a short-term reprieve. 

Here is the liquidation data:

Based on this graph, the two major liquidity clusters in the short term are the $72k–$80k range for shorts and a brief yet sizeable long liquidation at $68k. It is expected that bulls will have to wait a short time before the market corrects to the $68k level, allowing longs to be liquidated first.

Bears Still Reign Supreme

Bitcoin is currently trading just above the long liquidation at press time, hovering around the $68.5k level. The bulls made a prolonged, yet uninspired attempt to take the digital asset to $72k, but it didn’t work for them. Here is the price action from the last 7 days:

The premier digital currency is currently consolidating within a narrow $67k–$70k range. However, the bears still control the proceedings and can manage a sudden dip to $60k on the trot. Several longs might be liquidated in the process, and the bears could be looking forward to repeating their earlier carnage. The path of least resistance remains downward in the long term, as the bear market has begun according to all major technical indicators.

However, analysts believe that the spot price is on a mission to liquidate leveraged positions and has consistently defied the path of least resistance, liquidating unsuspecting traders. 

Popular analyst Ted Pillows resonated with this idea and stated that the bulls might be looking to close this gap sooner rather than later. The influencer with over 280k followers tweeted:

“$BTC has a huge liquidity cluster between $72,000-$80,000 level.

On the downside, there’s one liquidity cluster at $67,000 level.

In the short term, it looks like bears could be in trouble”

The bears will be looking to at least end the misery of that one big long around the $68k valuation, and that might occur soon. After that, a move to $80k or at least $77k could be on the cards based on the liquidation data.

However, even if bulls make this happen, the market is still in deeply bearish territory. Only a strong move above the key $80k support-turned resistance can turn things around for the bulls, even if for the short-term.