Bitcoin’s strong bearish momentum this week has allowed it to blast past key support levels. The king of cryptocurrencies broke below $95,000 earlier today, targeting $94,000 as the next major support level.
The $94,000 Bitcoin price level demonstrated historic significance. It previously served as a consolidation zone and could potentially act as a bounce-back zone for the cryptocurrency.
The $94,000 price point was also significant because Bitcoin’s RSI will be in oversold territory. The support retest and oversold conditions may trigger another battle between the bulls and the bears. This is because some buyers may see the current level as an ideal entry point.
Meanwhile, recent reports revealed that BlackRock was among the large Bitcoin sellers in the last 24 hours. The company reportedly sold 2,310 BTC valued at around $221 million and 43,240 ETH worth over $136 million.
Whale Activity Signals Rising Demand as Bitcoin Price Approaches $94,000
While the bears have dominated the market this week, key market data revealed that demand, especially from whales, has been rising. This may highlight a potential pivot ahead, possibly near the $94,000 level.
According to Coinglass, large order book flow data revealed that whales acquired about $120 million in the last 24 hours.
The same category of traders also executed about $2.3 billion worth of liquidations during the same period.
Rising net demand for BTC among whales in the last 24 hours was significantly higher than previous figures on Thursday. This underscored rising conviction about a potential pivot ahead.
Interestingly, this marked a significant comeback for the whales. The same category of market participants previously demonstrated weak demand at recently broken support levels.
Despite the rising demand from whales, market data still confirmed strong sell pressure. Bitcoin experienced net outflows worth roughly $830 million in the last 24 hours at the time of observation.
Why Short Sellers Might be at Stake now That Longs Have Been Liquidated
The BTC net selloff dominance index revealed that short-term sellers were the biggest contributors to the current downside. The indicator also revealed that long-term holders held their positions.
The observation that short-term sellers were the dominance force driving the bearish outcome this week may give insights into potential outcomes this weekend.
It also warranted a look at other forces behind the sell pressure. Bitcoin’s crash below key support levels also triggered heavy liquidations.
More than $634 million worth of Bitcoin long positions were liquidated in the last 24 hours. These liquidations may have triggered a long squeeze event, and were likely the result of a liquidity sweep just below the $100,000 BTC price support level.
A closer look at the Bitcoin liquidation heatmap revealed that a potential reversal may flip the scripts on short sellers.
This was because the number of short positions has been rising recently as the market favored a bearish sentiment.
According to the Bitcoin liquidation map, roughly $929 million worth of liquidations were at risk in case BTC price bounces back above $100,000.
On the other hand, the cryptocurrency’s cumulative long liquidation leverage was less than $140 million at the $94,000 price level.
In other words, the current liquidation profile may incentivize a demand resurgence for the market to move to the next liquidity sweep, which will likely target short sellers.