The price movement of Bitcoin over the last day shows a dramatic battle between bulls and bears, which ended with a quick 100x leveraged short liquidation event at around $103,400. Although Bitcoin was able to stay above $103,000, the rejection close to that mark set off a series of liquidations for short positions that were too leveraged. The $103,400-$104,000 range showed a cluster of activity, as the liquidation heatmap illustrates.
In anticipation of a correction brought on by waning upward momentum, bears tried to stop the Bitcoin rally at this point. They misjudged the late bulls’ purchasing power, though, which led to a liquidation of high-leverage shorts – many of which were probably using 100x leverage. These extremely risky positions experienced immediate margin calls because they were unable to tolerate even slight volatility.
The all-time high of $109,000 has not yet been tested or surpassed by Bitcoin despite this localized spike in liquidation. That level is still almost $6,000 away, and whales seem doubtful of the momentum right now. The speed at which they jump into short positions close to recent highs shows their hesitancy; they are probably betting that the current uptrend has insufficient volume or sustained market interest to continue pushing higher without retracing.
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Technically speaking, Bitcoin remains comfortably above its bullishly stacked 50-100 and 200-EMA levels. If buying pressure returns, the consolidation around $103,000 might serve as a base for a second breakout leg. The fact that RSI indicators are cooling off from previously overbought areas indicates that a pullback was required. The more significant question at this point is whether whales are attempting to outperform retail before the next leg up or are actually front-running a real top.
BTC may be ready for another push toward $106,000 and the pre-ATH region around $109,000 if it can hold above $103,000 and turn $104,780 into support. For the time being, Bitcoin is still on the verge of a significant breakout, but since whales are obviously not yet persuaded caution, is advised.