Key takeaways:
Bitcoin price consolidates around $105,000 as liquidity builds up on either side of the spot price.
After failing to flip $106,000, BTC/USD is retracing to establish support, but $100,000 is a key level of interest for Bitcoin traders.
Bitcoin’s (BTC) price trades 6% below its all-time highs of $111,900, and traders warn the asset may see a “larger correction” in June as $100,000 becomes a key level of interest.
Bitcoin price key support remains $100K
In a repeat of the move that followed its rise above $100,000 on May 8, Bitcoin has successfully held above this level for more than three weeks.
This is the critical point on traders’ radars and one that has not received a convincing retest recently.
MN Capital founder Michael van de Poppe spotted Bitcoin hovering at $104,300 saying that after being rejected from the $106,000 level, BTC may drop lower before regaining upward momentum.
An accompanying chart showed $100,000 was the key level to watch on BTC’s four-hour timeframe.
“Clear rejection on #Bitcoin implying that we’re going to see lower prices before we see upwards momentum.”BTC/USD four-hour chart. Michael van de Poppe
Pseudonymous analyst CrypNuevo shared a chart showing that Bitcoin failed to flip the resistance at $106,000 into support.
“So we could likely head to $100K psychological level + 150EMA.”
Meanwhile, popular analyst AlphaBTC projected a deeper correction that could see BTC price drop as low as $90,000, if the support at $100,000 is lost.
“$BTC is likely to go sideways for some time as this larger correction plays out in the first weeks of June, waiting for more hard data and the FOMC on June 18.”BTC/USD four-hour chart. Source: AlphaBTC
As reported by Cointelegraph, BTC price action could preserve $100,000 as support based on Glassnode’s market value realized value (MVRV) bands.
Related: Bitcoin price dips under $104K as Russia-Ukraine woes rile US stocks
Liquidations waiting at $100K and below
Several traders eyed a potential downside liquidity grab with bid orders thickening below the spot price, and others clustering below $100,000.
“$100K is a strong psychological level and liquidity tends to stack in these levels,” said CrypNuevo in a separate post on X.
The latest data from monitoring resource CoinGlass showed price eating away at bids around $105,000, with the bulk of interest clustered between the spot price and $100,000.
Bitcoin liquidation heatmap (screenshot). Source: CoinGlass
High bid orders were also building up below $100,000, with $170 million worth of liquidity sitting around $93,200.
On the upside, the $112,500-$113,500 cluster was the main liquidity area.
“There is significant liquidity in both directions, with a more concentrated build up below the lows of the last few days,” AlphaBTC said on X.
“I wouldn’t be surprised if $BTC ran the lows and then rallied back up to take what’s left above.”
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.