• Bitcoin is showing a downward price structure on the 1-day timeframe, but has the potential to rebound to $88K.
• The liquidation heat map indicates that investors should be cautious when placing buy positions for BTC.

Bitcoin [BTC] has been trading above the $82K support level in the past week, but without price increase prospects on the 1-day timeframe.

Shorter timeframes show hope for a potential price rebound, provided the $86.8K resistance level is overcome.

Fibonacci retracements from the price increase between August and December suggest that the $72K support level could be the next target. However, on-chain indicators do not support this pessimistic outlook.

Long-term investors continue to choose HODL over selling, which means there is still hope for recovery.

Is Bitcoin Ready for Another Price Decline?

Source: BTC/USDT on TradingView

BTC's daily chart maintains a downward price structure. OBV has also been in a downward trend since February, indicating that selling pressure remains dominant. Both factors emphasize the possibility of continued losses.

The price decline momentum has weakened according to the Awesome Oscillator but has not yet reversed to an upward trend.

Source: BTC/USDT on TradingView

After falling below the 3-month range in early March, Bitcoin seems to have formed a new range (white). The midpoint of the range at $86.9K has been tested as both support and resistance over the past three weeks.

Based on the current situation, a move below $83K could initiate a downward trend, while a breakout above $86.8K could start an upward trend.

OBV has created higher lows in the past ten days, but this is not a sign of strong buying. It is also insufficient to eliminate the selling pressure from February.

Source: Coinglass

The liquidation heat map in the past two weeks shows the nearest liquidity cluster is at $88K. The magnetic zone at $83K seems weaker compared to the zone at $88K.

Below, the $80K area is quite large but further from the current price.

Therefore, traders should prepare for the possibility of Bitcoin moving to the $88K area before facing a price rejection.

Technical analysis suggests that if $86.8K is converted to support, it may be safe to place buy positions. However, the liquidation heat map indicates this might not be accurate. Caution is necessary, especially for buyers.

Traders should carefully monitor reactions at resistance levels. Rejection could open up opportunities for short selling.