Bitcoin is facing strong selling pressure as Democrats appear to be sweeping the US midterm elections, according to an analyst cited by Coinpedia. The decline comes alongside weakness in global markets, with Japanese and South Korean stocks losing approximately $400 billion in market value. South Korea’s stock market fell around 5% during the session.
Key Support Zone at $73K–$75K
Bitcoin is currently testing a downward-sloping support trendline that has supported its price during previous declines. The analyst is watching the $75,000–$73,000 range, which aligns with the 200-day moving average and the lower boundary of the Bitcoin Bull Market Support Band.
A move into this zone could create an opportunity to open new swing-trading positions. The analyst suggests Bitcoin could first sweep liquidity below its recent range low before recovering. Such a move could encourage traders to open short positions, creating liquidity for a potential rebound. However, the weekly candle close will be important to determine whether Bitcoin can hold its broader support levels.
Liquidation Heatmap Highlights $76K and $83K–$84K Levels
Bitcoin’s liquidation heatmap shows important liquidity levels on both sides of the current price:
- $76,000: Bitcoin is testing this liquidity area, which could lead to another move lower.
- $75,000: Approximately $37 million in buy orders are concentrated around this level, making it an important support zone.
- $83,000–$84,000: More than $500 million in potential short liquidations are concentrated in this range.
A move towards $83,000–$84,000 could trigger short liquidations and add buying pressure. On the downside, a break below $75,000 could bring the $73,000 support level into focus.
Rising Open Interest Signals Possible Squeeze
Bitcoin’s open interest has increased even as its price continues to decline. The analyst sees this as a warning that a major liquidation event could be approaching. The rising funding rate also raises concerns about a potential long squeeze, where leveraged long positions could be liquidated if Bitcoin falls further.
The analyst expects a significant Bitcoin price move within the next two to three weeks, although its direction remains uncertain. Ethereum has also declined slightly during the market weakness, and the analyst is monitoring the ETH/BTC trading pair for potential opportunities.
