Key takeaways:
-
Bitcoin price consolidates around $105,000 as liquidity builds up above the spot price.
-
A support/resistance flip at $106,00 is a must for the bulls as $100,000 remains a key level.
Bitcoin fell alongside the broader crypto market during Tuesday’s late New York trading hours, dropping by as much as 4% to $103,400 after US President Donald Trump’s comments on the Iran-Israel conflict.
After tapping the liquidity around $103,000, traders said a correction to areas below $100,000 was unlikely as liquidity builds up above $106,000.
Bitcoin price key support remains at $100,000
Bitcoin’s price has held successfully above the $100,000 psychological level since reclaiming it on May 8. This has remained a critical level on traders’ radars and has not received a convincing retest recently.
Related: Bitcoin downside risk lingers, upside hinges on holding above $102K
MN Capital founder Michael van de Poppe spotted Bitcoin hovering at $104,400, saying that after being rejected from the $106,000 level, BTC may drop lower to take the liquidity between $100,000 and $103,000.
An accompanying chart shows $100,000 as the key level to watch on BTC’s four-hour time frame. Losing this level would see traders look for entry positions below $100,000.
Van de Poppe added:
“The second region is sub-$100K, which I find less likely.”
Pseudonymous analyst CrypNuevo shared a chart showing Bitcoin “looking good” as it holds above $100,000 after successfully retesting it on June 6.
“All we need is this support level to hold, and to flip $106,000 into support to push the price higher,” the trader said.
As reported by Cointelegraph, the $100,000 level is an important psychological boundary with implications for sentiment should it fail to hold.
Liquidation clusters pop up above $106,000
Several traders eye a potential upside liquidity grab with ask orders clustering above $106,000.
The latest data from monitoring resource CoinGlass showed price eating away bids around $105,000, with ask-orders clustering between the spot price and $109,000.
The chart above shows ask orders worth $70 million building up around $106,500, with the $109,000-$110,000 cluster being another potentially significant liquidity area.
If the $106,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $110,000, which is the next major liquidity cluster.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
