Bitcoin Shows Critical Support Demand for Price: Above Bullish, Below Bearish! - Coin Bulletin

Bitcoin (BTC) price remaining above the short-term realized price shows demand strength; however, falling below this level could signal a potential reversal.

The large liquidation event that occurred in the last 10 hours drew attention with the liquidation of a long position worth $359.7 million. This liquidation is due to the BTC price being above the realized price in the 1-day to 1-month UTXO (Unspent Transaction Output) age band. So, what does this situation mean?

Long liquidation refers to the situation where traders are forced to sell the Bitcoins they have taken with leveraged positions, meaning that they expected the price to rise, when the price falls to certain levels. In short**, if the losses of the position exceed the collateral, the exchange automatically liquidates the position and carries out the sale**.

After the decline, is there a rise?

This liquidation event may cause a decline in the market. However, it may also lead to a drop in prices to a certain floor level and then a recovery. The liquidation of most long positions may indicate the beginning of a recovery.

BTC price and realized price support

Short-term investors of Bitcoin are currently in profit after 1 day – 1 week. This means that investors who bought BTC recently have made profits by trading above the price they acquired. However, the price level of 84,740 dollars, which has occurred in the range of 1 week – 1 month, creates a critical support level for the Bitcoin price. If BTC drops to this level, it may find strong support here.