Bitcoin May Retrace After Breaching $71,000: Liquidity Map Reveals Key Support Levels

As Bitcoin's price rebounds to around $71,000, market liquidity continues to build, and traders are closely watching for the next price movement. Data shows BTC/USD at $70,780 on Bitstamp, up 4.5% in 24 hours, with technical indicators showing a stabilizing and upward trend.

Looking at the order book liquidity distribution, the $70,000 to $72,000 range has relatively thin sell-side accumulation, making it an area prone to a "liquidation sweep." A rapid breakthrough of this range could briefly push the price towards the next major resistance zone of $74,000 to $75,000. However, it's more noteworthy that the $64,000 to $68,000 range below has about four times the total liquidity of the range above, making it a more probable short-term retracement target.

On the weekly timeframe, CoinGlass's liquidation heatmap further reveals the largest all-time high short liquidation cluster in the $74,000 to $75,000 range, implying that if the price rises to this level, it could trigger a sharp reversal.

At the same time, the spot market is sending positive signals. Bitcoin's 24-hour trading volume has jumped from $3.38 billion on Saturday to $9.3 billion, an increase of over 140%. Spot ETF flows are also strong, with net inflows of $934 million in a single week and total trading volume climbing to $23.1 billion, a significant increase from $16 billion last week, reflecting continued accumulation by institutional investors and active entry of traditional financial capital.

Independent crypto analyst CW8900 pointed out that major exchanges are currently showing a net buying pattern, indicating that the market is not driven solely by short-term speculation but has genuine and widespread demand support.