Bitcoin Ready to Sustainably Surpass $105,000
The Bitcoin, the leading cryptocurrency, has been gradually recovering since hitting a low of $100,424 on June 5th. Although this rebound has reassured some investors, the digital currency still struggles to sustainably surpass the $105,000 threshold.
However, on-chain data suggests that BTC might be on the verge of starting a new bullish phase. Indeed, a significant liquidity concentration has been spotted in the $106,736 zone. This is a level that often acts as a magnet for price action.
The BTC liquidations heatmap clearly shows this high liquidity zone. These clusters tend to attract Bitcoin purchases, making a breakthrough beyond the $105,000 resistance more likely. As the market moves towards these price levels, it can trigger liquidations and the opening of new positions, thus fueling upward momentum.
Therefore, the concentration of a high volume of liquidity at $106,736 indicates strong trader interest in buying or closing short positions at this price. This creates favourable conditions for surpassing the $105,000 resistance and progressing towards the $106,000 zone.
A Truly Supported Bullish Outlook
Another on-chain indicator seems to corroborate this positive momentum for Bitcoin. The Bitcoin Network Realized Profit/Loss has significantly dropped in recent days, from $715 million to just $90 million. This marks a decline of over 90% since June 4th.
This decrease in Realized Profit/Loss typically discourages selling pressure as traders are less inclined to realize profits at a loss. This behaviour encourages longer holding periods, tightening supply and potentially driving the BTC price upwards in the short term.
At the time of writing, Bitcoin is trading around $105,630, just below the resistance formed at $106,548. If new demand enters the market, it could trigger a breakthrough above this price level, propelling towards the $106,736 region where the liquidity cluster is located.
Once this zone is surpassed, BTC could then soar towards $109,310. However, if selling intensifies, Bitcoin could range or experience a pullback towards $103,938.
