Bitcoin Caught in Liquidity Wipe Zone: Key Resistance and Support Will Transition Market Next

On-chain analytics from Alphractal presents a critical breakdown of Bitcoin’s current market structure. BTC is currently navigating between two pivotal price zones that could trigger significant position liquidations—a dynamic that experts are closely monitoring as the market faces potential volatility ahead.

The Two Liquidation Zones Defining Bitcoin’s Near-Term Move

According to blockchain data specialists, Bitcoin’s price action is trapped within a precise liquidity corridor. The $90,500 resistance level represents a major accumulation of short positions that could experience mass liquidation if breached decisively. Conversely, the $84,500 support zone marks where bullish traders have concentrated their longs and remain vulnerable to a sudden wipe-out if prices break lower.

At current levels around $91.84K, Bitcoin is dancing on a knife’s edge. The transition from one zone to another would likely trigger a cascade of liquidations, fundamentally reshaping market sentiment and potentially accelerating price discovery in either direction.

Why the Liquidity Hunt Remains Active

The current market structure suggests intense volatility will persist until one side of this liquidity pool is cleared. Market makers and sophisticated traders are actively hunting for stop losses, and the narrow price range compounds the tension. Any sharp directional move could wipe out billions in positions simultaneously.

On-Chain Signals Flash Warning Signs

Beyond price levels, on-chain metrics tell a more sobering story. The SOPR Trend Signal—which tracks whether Bitcoin transactions are occurring at profit or loss—has deteriorated significantly. Transfers are now happening at diminishing profit margins or near breakeven, a pattern historically seen during bear market consolidations.

This transition to lower profitability metrics is characteristic of prolonged market bottoms. According to chain analytics, genuine confirmation of a price floor will only arrive when green signals reappear on the SOPR indicator—a process that could stretch across multiple months.

What This Means for Bitcoin Traders

The combination of tight liquidation zones and weakening on-chain profitability creates a compressed spring. Bitcoin remains vulnerable to shakeouts in both directions, but the underlying data suggests patience may be required before a sustainable recovery takes shape.