Rate-Cut Hopes Fade as BTC Loses Momentum; Liquidation Map Warns of $80K Risk

Bitcoin broke above $91k in the early hours of Thursday, peaking at $91,926 for the first time in the last seven days.

However, the asset struggled to maintain momentum, leading to a wane, and faced slight selling pressure. Nonetheless, the session ended in the green.

The increase follows an increased chance of a rate cut in December. A recent Reuters report noted that, amid Federal Reserve Chairman’s statement that there will be no rate cuts, a series of mixed economic data increases the odds.

Another report earlier on Thursday indicated that crypto investors and watchers were beginning to catch on to this possibility. A clear indication of this is the growing stake on Polymarket. In addition to the rising stakes, they’ve also bought more Bitcoin.

Data from CryptoQuant shows that more BTC is leaving exchanges than entering them. As a result, the exchange reserves are depleting. As of the time of writing, there is a deficit of over 3k BTC since the start of Thursday.

Bullish Signals On Thursday

Data from Coinglass shows that the current outflow is not a standalone event. Since the week started, in addition to strong buying, investors moved more assets out of exchanges, with Monday being the biggest day. 

However, there were fears that the waning upward momentum may spiral into another downtrend. While this risk remains high, data suggest investors remain optimistic.

One such example is the current behavior of traders in the derivatives market. A glance at the long and short by Hybeliquid whales shows that those who believe the apex coin will surge higher outnumber the others. 

While this is not the first time such a thing has happened and the price has gone south, it is essential to note that the exchange outflow, along with current fundamentals, align with the whales’ conviction. 

Trading action on Monday showed their conviction went unrewarded, as BTC retraced to $83k, losing over 4%. Derivatives traders lost $956 million, and long positions accounted for $833 million of the liquidations.

Bitcoin Liquidation Map Gives Room

The Coinglass liquidation map is an interesting way to assert a key level. A closer look at the chart below reveals several bright yellow lines. The first is around $94k. The mark depicts a level at which liquidation of short positions will occur. 

Across all exchanges, many traders’ liquidation prices are $94,000. However, a closer look at recent price action shows that the apex coin failed to break above $92k earlier. It is worth noting that this could be due to Binance traders staging a selloff at the mark, as it is another liquidation level for them. 

Nonetheless, the ongoing price actions suggest that bulls may soon flip this level and contend with the sell wall at $94k. 

The image above also indicates stronger liquidation around $97k. Based on this chart, flipping this critical could guarantee a surge above $100k. 

The Bullish Crossover 

The 1-day chart depicts BTC’s strongest performance since the first week of November. It gained over 4% over the last week. 

The moving average convergence divergence flipped bullish as trading conditions improved. It has a bullish crossover during the previous intraday session. In several instances, this may signal further price increases. 

Matching chart data and the liquidation heat map reveals a higher chance of further increase. Bitcoin must flip $92k to seal the uptrend and retest the $94k barrier.

A closer look at the updated chart shows a more cautious approach by the bears. As it stands, there are no strong liquidation levels before $92k. The bull may send Bitcon above $90k if the current upward momentum continues.

Conversely, the chart above shows a notable liquidation level at $83k. The apex coin may slip to this mark and as low as $80k if the downtrend continues. 

The post Rate-Cut Hopes Fade as BTC Loses Momentum; Liquidation Map Warns of $80K Risk appeared first on CoinTab News.