U.Today – A complex picture is painted by the current price movement of , as the asset negotiates considerable market volatility. Bitcoin dominates both ends of the liquidity spectrum on the 4-hour chart, with buy liquidity at the bottom and liquidation sell liquidity at the top. This move is indicative of Bitcoin's volatility as it broke both resistance and support levels.
The analyst noted that Bitcoin is currently stable in its current value area, suggesting that attention could be focused on the point of control (PoC) and support levels near $98,000. are. A break below this could result in another test of the lower support zone, but regaining this zone and sustaining above it will be the basis for a recovery.
A lower time frame indicates that external factors, especially its relationship with traditional financial markets, are limiting Bitcoin's price. The selloff in the Bitcoin market appears to be a direct result of the downturn in the stock market, particularly the S&P 500 (ES). This interaction shows how macroeconomic variables continue to influence Bitcoin market trends.
The importance of New York trading lows is one of the key findings. If Bitcoin can sustain above this level, it could be a sign of increasing passive bidding and could support future upside. On the other hand, if it breaks below this low and encounters pressure from passive sellers, it would indicate acceptance of the lower price and could lead to a more significant correction.
While the $98,000 level appears to be a key zone, traders are encouraged to keep an eye on whether Bitcoin can sustain its position within its value area. Given that extreme liquidity has already been wiped out, the next move will likely depend on whether Bitcoin is able to find and hold support or risks entering deeper pain mode with further declines. You will. Bitcoin traders should closely monitor key levels and pay attention to broader market cues to provide clearer direction during this volatile phase.
This article was originally published on U.Today
