Crypto Price Action Bitcoin XRP Resistance

Crypto Price Action: Bitcoin’s $1B Liquidation Shakeout & Key Trading Setups

Bitcoin’s recent move captured the world’s attention, wiping out a staggering number of traders and reshaping the crypto trading landscape. The sharp drop brought heartbreak for many, but hidden among the volatility were hidden opportunities for those paying attention. In this deep-dive, we break down the steps that led to the brutal shakeout, the chart patterns guiding Bitcoin’s next move, and offer a trader’s eye view on Ethereum, XRP, Solana, and what it all means for Crude Oil Analysis and Natural Gas analysis seekers looking for parallels in technical setups, risk, and reward opportunities.

Understanding the Recent Brutal Move Down on Bitcoin

Bitcoin’s recent sharp price drop rattled even experienced traders. The scale of losses was jaw-dropping. In just a matter of hours, approximately $900 million in long positions were liquidated, paired with more than $100 million in shorts. That’s a financial earthquake.

Price action quickly smashed through key support levels, sending traders scrambling to adjust risk or exit altogether. Still, for those watching the charts closely, the chaos also opened doors. Some, like the author, picked up fresh long positions very close to the bottom.

The Role of the 200 EMA on the 4-Hour Bitcoin Chart

The 200 Exponential Moving Average (EMA) on the 4-hour timeframe isn’t just another line. For experienced chart-watchers, it often acts as a “line in the sand” for short- and medium-term trend direction.

Why do traders obsess over this level? Because time after time, price tends to react sharply at the 200 EMA. Recently, this moving average lined up nearly perfectly with a liquidity low on Bitcoin’s 4-hour chart. This is the classic confluence moment. Technical traders using Crude Oil Analysis or Natural Gas analysis recognize similar patterns––when a major EMA aligns with price clusters, you get fireworks. If you had a chart in front of you, you’d see the 200 EMA circling the very support band that price tagged before most liquidations.

What “Liquidity Below Recent Lows” Means and Why It Matters

Liquidity is fuel for markets. In simple terms, it’s where the money sits––and in crypto, “below recent lows” means that’s where traders tuck their stop-loss orders. Market makers know it. When Bitcoin knifed below the most recent clusters of lows, it was more than a chart pattern. It was a mass forced sell-off. Each stop tripped forced positions to unwind. The cascade triggers a series of automatic sales or margin liquidations, driving price even further for a moment.

For newer traders: a stop-loss is a safety order meant to close your position if the price drops below a certain level. Placing stops just below previous swing lows is popular, but it also makes those levels magnets for sudden price moves. That’s the liquidity grab: big players “hunt” these stops, vacuum them up, then ride the rebounds.

Real-Time Twitter Updates During the Price Drop

Chart action during these volatile periods moves too fast for blog posts sometimes. Social channels like Twitter become battle stations. As Bitcoin approached the final support, live updates poured in.

One key message rang out:
“Bitcoin has finally hit the big support. No guarantee it will hold, but let’s see who actually has the guts to click the button.”

It’s a trader’s way of saying, “Here’s the test. Few will buy when it feels this risky.” When that first support gave way, Bitcoin dropped fast to the last key liquidity level––the “edge of the cliff.” For ongoing live calls, following the author’s Twitter stream helps catch these moves as they unfold.

The Last Liquidity Level Bounce – Potential for Reversal or Further Decline

The key liquidity zone around $100,700 became the market’s last redoubt. Would it hold, or would Bitcoin bleed out on the charts? Everyone watched for a reaction.

From a technical stance, this is decision time. Traders want to spot either a sharp bounce (signaling trapped sellers covering) or a total absence of buyers (opening floodgates to the next wave down). In oil or gas markets, similar “line in the sand” setups at major lows often signal reversals – but nothing is ever guaranteed.

Lower Price Targets If Bitcoin Continues to Fall

Where could the pain lead if the $100,700 area breaks again? Eyes turn to targets where previous liquidity sits.

Key potential support levels include:

$92,000 – This is the next major cluster of past lows where stops would naturally collect.
$90,000 – A round number, psychological, and reinforced by even older support structure.

These are zones, not single lines. Breaks here can be sharp; bounces, if they come, are often fast and dramatic. Chart setups in Crude Oil Analysis and Natural Gas analysis show similar cascades after major breakouts.

Why the Best Trades Feel the Worst: Buying at Support with Fear

In trading, crowd emotion offers clues. At the deepest point of the drop, fear is highest. That’s why the phrase, “The best trades feel the worst when you take them,” always hits home.

When you’re staring at a support level, with price plummeting and social media alight with panic, it takes guts to press “buy.” Most can’t do it, or only manage a tiny position. Yet this is where “buy low, sell high” comes alive.

Traders who act here often find themselves on the right side of the next surge upward—if the support holds.

Bitcoin’s Head and Shoulders Pattern: Breakdown and Price Target

One of the classic signals in any chartist’s playbook is the head and shoulders pattern. Here’s what stands out:

Left Shoulder: First peak, followed by a small drop.
Head: Higher peak, then another drop.
Right Shoulder: A final rise that doesn’t reach the height of the head.

What does it mean? This setup often warns of a potential reversal from bullish to bearish. On Bitcoin’s current chart, the right shoulder appears poised to form if we see a bounce back to resistance. That creates a likely price target around $90,000, measured from the highest point (head) to the neckline (the base of the pattern).

Chart watchers in crude oil or gas keep an eye on these reversal formations too. Recognizing the pattern early often keeps you out of trouble—or even sets up a strong short opportunity.

Elliott Wave Theory: Five-Wave Down Structure Nearing Completion

If you’re into technical analysis, the Elliott Wave Theory maps out crowd psychology in market cycles. It’s like a story in five chapters:

Wave One: First sharp move down.
Wave Two: A small bounce or relief rally.
Wave Three: The major push lower.
Wave Four: Another smaller upward correction.
Wave Five: The final leg of the drop.

That’s where we stand right now with Bitcoin: nearing the end of Wave Five on the 4-hour chart. These moves set the stage for an ABC corrective move upward—a three-step bounce before the next major trend unfolds.

Technical traders often look for Fibonacci retracement levels to mark out likely spots where this bounce could stall.

Here’s a quick breakdown for beginners:

Impulse down (Wave 1)
Correct up (Wave 2)
Sharper down (Wave 3)
Correct up (Wave 4)
Final down (Wave 5)
Expect ABC bounce up (A = up, B = down, C = up)

Both Crude Oil Analysis and Natural Gas analysis often reference similar wave patterns for mapping broader price swings.

Importance of Fibonacci Retracement Levels in Current Setup

Fibonacci retracement isn’t some mystical math trick. It’s a way for traders to calculate possible bounce levels after a big move. The two most-watched levels are the 0.5 retracement (halfway back up) and the 0.618 retracement (known as the golden ratio).

The 0.5 retracement is near recent highs, often the first area to test after a bounce.
The 0.618 retracement is a second, sometimes stronger, ceiling.

Short traders often bunch their stop-losses above these levels, creating new pools of liquidity (fuel for a squeeze higher before the next drop).

Possible Scenarios: ABC Correction Up or Continued Decline

So, will Bitcoin push higher in an ABC correction wave, or drop further? Two stories could unfold:

If the bounce sticks, expect a move toward the 0.5 or 0.618 Fibonacci levels.
If selling pressure remains, Bitcoin breaks support and heads for those lower flagged targets.

Volume and strong price reactions to key levels act as a guide. With market volatility at fever pitch, rigorous risk management is essential.

Diagonal Resistance Zone on 4-Hour Chart (~$104,500)

Beyond horizontal lines, chartists track diagonal resistance drawn across lower highs—like connecting the dots of each bounce that failed. The $104,500 area is highly watched now. Overlay this with the volume point of control and you have what many consider a battleground.

A close above this band signals possible strong upside and could fuel a three-wave rally back toward prior highs. Think of it as reclaiming lost ground; if Bitcoin recaptures this, the short-term landscape brightens.

Trading Strategy: Entry Points for Long and Short Positions

With the tools on the table, here’s a distilled plan:

New long entries: Only after a clear break above the diagonal resistance ($104,500), ideally on strong volume.
Short entries: If price nears the right shoulder high (or Fibonacci resistance) and starts to stall—especially if a rejection is clear.
Stop-losses: Always place stops just beyond invalidation zones to avoid surprise liquidations.

Action Plan:

Buy after upside breakout above $104,500 on high volume
Sell/short at right shoulder high or strong reaction at Fibonacci levels
Set stops below value area low ($102,300) for longs, above local highs for shorts

Risk Management: Critical Price Levels to Protect

Protecting positions hinges on knowing the dangers:

The value area low at $102,300 acts as a line in the sand. Lose it, and the mood shifts bearish fast.
Next big support: $95,000-$96,000.
The head and shoulders setup loses validity if price fails to push above resistance and simply rallies without forming a clean right shoulder or wipes out the neckline early.

Bold warning: Never trade without a stop-loss. Never. Markets move too fast, and liquidations are unforgiving.

Bearish Indicators on Weekly and Daily Timeframes

Zooming out, the longer timeframes send mixed signals:

MACD (Weekly): Bearish divergence set to confirm soon (where price moves higher but indicator trends weaker).
RSI (Weekly): Already signaling bearish divergence.
Money Flow (Weekly): Still making lower highs, which warns of potential sellers stepping in.
Daily timeframe: Shows hidden bullish divergences—meaning some short-term relief bounces are possible.

Bearish divergence: when price hits higher highs while indicators do not, often a warning of exhaustion. Hidden bullish divergence: price sets higher lows as indicators set lower lows, suggesting possible strength under the surface.

Personal Trading Positions and Market Outlook

Transparency matters. Current positions:

Long on Bitcoin, Ethereum, XRP, SUI, Solana.
No shorts active right now.

The game plan: Let the bounce play out. Watch for upside breaks. If price gets rejected hard at diagonal resistance or Fibonacci retracement, prepare for possible downside setups. Always be moving your stop loss to lock in profits and protect capital.

Ethereum’s Bullish Setup and Price Targets

Ethereum stands out. Its chart looks healthier than Bitcoin’s right now. Here’s the approach:

Recent long entry at $2,470
First target: $2,820 (weekly resistance)

Several signs point higher: continued higher highs, strong volume, and favorable daily and weekly chart structures.

Key points:

Entered long at $2,470
Targeting $2,820
Watch for overextension and signs of reversal as the target nears

XRP Technical Overview and Price Expectations

XRP followed a similar playbook as Bitcoin—dipped below recent lows to grab liquidity, then rebounded.

Chart pattern points to a move toward the gold Fibonacci ratio (around $2.32)
Confirmation needed by weekly higher highs

Liquidity grabs in altcoins like XRP often mirror what happens in Bitcoin, thanks to algorithmic traders acting across charts.

Solana Chart Analysis and Bullish Divergences

Solana joined the pack with a sharp dive below prior support, triggering stop-losses and grabbing liquidity.

A clean regular bullish divergence appeared: lower lows in price, higher lows in RSI.
Hidden bullish divergences on the daily chart suggest another flush higher is possible.

Long here has backing, as technical confirmation lines up with large-scale Crude Oil Analysis and Natural Gas analysis setups where hidden strength shows before big rallies.

Altcoins vs Bitcoin: Current Market Rotation

Right now, many altcoins (notably ETH, XRP, SOL) are showing more constructive price action than Bitcoin. While Bitcoin may bounce, chances of an immediate all-time high look slim based on weekly signals.

In similar oil and gas cycles, market leadership rotates. We could see capital shifting to altcoins, which often outperform when BTC takes a breather.

Comparison Table:

Asset	Current Support	Resistance/Target	Chart Structure
Bitcoin	$100,700 / $95k	$104,500 / $90k	Bearish/reversal
Ethereum	$2,470	$2,820	Bullish
XRP	Recent lows	$2.32	Bullish setup
Solana	Recent lows	Upside bounce	Bullish divergences

Summary of Key Bitcoin Support and Resistance Levels

Let’s recap the biggest price zones on Bitcoin’s current map:

$100,700: Last liquidity support
$102,300: Value area low (crucial for holding range)
$104,500: Diagonal resistance / volume point of control
$90,000: Head and shoulders pattern target
$95,000–$96,000: Lower backup support if all else fails

Knowing these levels focuses your trading—just as monitoring pivot zones does in Crude Oil Analysis or Natural Gas analysis.

Recap of Price Targets and Chart Patterns

On the roadmap:

Elliott Wave 5-wave: Likely finished, setting up ABC correction upward
Fibonacci retracement (0.5, 0.618): Watch these levels for resistance on any bounce
Head and shoulders: Pattern remains at play if bounce forms right shoulder, targeting $90,000. Invalid if price rallies straight through resistance.

Keep an eye on volume and reaction at every step. Patterns only matter if confirmed with price action.

Key Technical Indicators to Watch

MACD (Weekly): Bearish divergences mounting, warning of trend exhaustion.
RSI (Weekly): Bearish divergence signals caution.
Money Flow: Lower highs, lessening upward strength.
Daily timeframe: Hidden bullish divergences offer rebound hints.

Watchlist summary:

MACD: trend momentum
RSI: overbought/oversold, divergence
Money Flow: capital inflow/outflow
Divergences: early warning of reversals

Practicing Proper Risk Management in Today’s Market

Trading isn’t just about picking bottoms and tops. It’s about survival.

Use strong stop-loss orders every time.
Don’t bet more than you can afford to lose.
Adjust position sizes as volatility rises.
Watch how the market treats key volume levels for early warning.
Tune out emotion—both fear at lows and greed at highs.

Protecting your capital is as important as seeing patterns, in crypto as well as Crude Oil Analysis and Natural Gas analysis.

Conclusion

Bitcoin’s wipeout and rebound are lessons in the rhythm of markets—fear, liquidation, recovery, and the search for the next opportunity. Whether you’re trading crypto, crude oil, or natural gas, the same rules hold: Know your key levels, watch the patterns, manage your risk, and stay calm in the storm. With technical structures like moving averages, liquidity traps, head and shoulders, and Elliott Waves, a disciplined eye can find setups in chaos. Learn from recent shakeouts, watch the market’s pulse, and ride the next move—rather than letting it ride you.

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