Bitcoin (BTC) rose 5.01% on Wednesday, setting up the daily high at $86,990, ending weeks of consolidation. However, futures data for BTC and liquidation heatmap models suggest this uptrend could come undone soon.
Let’s explore Bitcoin price predictions and key levels to watch as data hints at a bearish reversal.
Bitcoin Price Rose 5%, But a Crash Seems Likely
Bitcoin rose 5.44% on Wednesday, March 19, from a low of $82,501 and set up a daily high of $86,990. This move pushed it to sweep the previous weekly high of $85,270. As long as BTC stays above this level, the bullish outlook will most likely continue, pushing it higher.
However, the liquidation heatmap mode by CoinGlass suggests that this recent price rally may come undone soon. During Wednesday’s price rally, the liquidity to the upside was swept. Now, the heatmap model shows three key liquidity levels to the downside – $85,000, $81,000, and $77,618, respectively. Combined, these three levels harbor more than $3 million in liquidity. If the buyers fail to sustain Bitcoin price above the key support level of $85K to $84, the chances of a sustained downtrend are high.
While the liquidation model may not be enough to ascertain the directional bias, data from Aggr.Trade shows the recent 5.01% Bitcoin price rally was driven mostly by Perpetuals and not Spot buyers. Often, spot buyers tend to be patient with their investments, and perpetual traders are only in the trade to capitalize on short-term moves. As these perpetual traders unwind their long positions, Bitcoin price could crash, undoing the recent move to $87.5K.
Moreover, the Spot buyer CVD is dropping since the peak a few hours ago, showing that spot buyers are actively selling, which adds credence to a potential bearish reversal for Bitcoin price.
With key events such as interest rate decision and Fed’s FOMC meeting behind us, the crypto markets could show its actual intention – up only or more chop?
Frequently Asked Questions (FAQs)
The model suggests that the rally may come undone soon, with three key liquidity levels to the downside at $85,000, $81,000, and $77,618.
The rally was driven mostly by perpetual traders, not spot buyers, which implies that the market may be due for a correction as perpetual traders unwind their long positions.
The drop in Spot buyer CVD indicates that spot buyers are actively selling, which adds credence to a potential bearish reversal for Bitcoin price.
Akash Girimath
Senior Cryptocurrency Analyst & Market Strategist
Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts.
A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise.
Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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