Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- MKR fell to a bullish zone in the H12 period, just above the psychological level of $1400.
- The bullish zone aligned with a high liquidation zone, which could make a reversal likely.
Bitcoin [BTC] posted a loss of over $1000 after dropping $35.2k. At the time of writing, the king coin was struggling to defend $34.0k. The losses incurred Maker [MKR] There is a sharp pullback from $1651 to a bullish order block (OB) of $1430 – a loss of 12%.
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Can MKR reverse recent losses?
Source: MKR/USDT on TradingView
At the time of writing, the pullback reached the H12 bullish OB of $1413 – $1444 (cyan). The bullish zone was slightly above the key support at $1403, and the stretch could provide resistance to bearish efforts.
Should sellers exit in the aforementioned area, a bullish reversal could be feasible. But MKR bulls need to overcome the resistance at $1481 to reach the overhead roadblock and cross the bearish OB in H12 below $1600.
Meanwhile, the RSI broke below 50, underscoring increased selling pressure. Combined with the massive capital outflows as indicated by the downward CMF, the negative numbers showed that sellers had the upper hand at the time of writing.
There were major liquidation levels below $1550 and $1450
Source: Hyblock
Data from Hyblock provided even more nuanced areas where MKR’s price could move next. Based on the Liquidation Heatmap, the orange areas below $1450 and $1550 were major liquidation zones.
Normally, prices tend to react strongly in large liquidation zones, posing high levels of risk for leveraged traders. As such, we could see MKR’s price gather liquidity below $1450 before attempting to grab the rest below $1550.
How many Worth 1,10,100 MKRs today?
Since the $1450 was within the bullish zone of H12, MKR prices could react to the bullish zone, especially if BTC does not post more losses.
Thus, a bullish reversal in the bullish zone of H12 was feasible if a liquidity chase were to occur, as evaluated above. Alternatively, more BTC losses could push MKR towards $1350.
