Bitcoin has entered a consolidation phase after falling short of breaking its all-time high this week, leaving bulls in anticipation of the next big move. Currently trading just below its previous peak, BTC’s inability to push past this level has led to a temporary reset in momentum. 

Key data from CryptoQuant shows a recent uptick in long BTC liquidations, signaling that bullish traders are facing a short-term shakeout. This wave of liquidations is forcing leveraged positions to unwind, which may clear excess leverage from the market.

While this has created near-term volatility, it could also set up the groundwork for a new surge. As liquidity resets, BTC may be establishing a healthier foundation for a stronger breakout attempt. 

Analysts suggest that this period of consolidation could be a pivotal moment for BTC, preparing it to finally breach all-time highs and drive a fresh leg up in the market. With the stage set for potential volatility, investors are closely watching for signs of renewed momentum that could propel Bitcoin into uncharted territory in the days ahead.

Bitcoin Liquidity Resting Above ATH

Bitcoin is currently facing a pivotal moment as liquidity hovers just above its all-time highs, and bearish sentiment grows among traders. With key resistance firmly in place, many bears are confident that BTC will struggle to break through this critical level in the near term. 

Insights shared by Maartunn on X highlight a concerning trend: the Bitcoin long liquidations across all exchanges are rising rapidly, suggesting that leveraged long positions are being squeezed out as the price remains stagnant.

This increase in long liquidations could signify a broader market shakeout, potentially se

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Author: Sebastian Villafuerte