BitcoinBTCThe price of the, fell on Wednesday to $65,800. It dropped below intraday trendlines and raised concerns that last weeks drop to $60,000. Analysts say that the likelihood of another fall to the annual low (59,800), is growing due to an increasing liquidity gap between 66,000 and 60,000.
Takeaways from the conference:
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Bitcoin has formed a series of lower highs after repeated rejections near the $70,000–$72,000 resistance zone.
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Price is below the key moving averages. The index of relative strength (RSI), therefore, tends towards oversold conditions.
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The liquidation heatmap showed that liquidity was low up to $65,500. Therefore, the price could move downwards.
Bitcoin’s future is slowed down if you don’t hold $75,000
Bitcoin’s hourly chart shows several failed attempts at holding above $70,000. Each refusal has lead to lower prices highs, and steadily selling pressure.
BTC briefly reached intraday highs near $69,800, before the price reversed sharply in New York on Wednesday. This formed a classic failure swing pattern. This move trapped longs who had been positioned to profit from the breakout and increased downside momentum.
BTC traded also below the exponential moving averages of 50 and 100 periods, which confirms short-term control by bears. The RSI remained under 50, indicating that there was limited buying pressure.
A 15-minute order block sits near the $60,800–$61,000 region, an area where strong buying pressure previously stepped in after BTC printed a yearly bottom at $59,800. The $60,800-$61,000 region is a potential liquidity target in the event that $64,000 doesn’t hold.
Related: When will Bitcoin start a new bull cycle toward $150K? Look for these signs
Data from the Heatmap shows that $60,000 can be a magnet for liquidity
Bitcoin’s Liquidity Heatmaps show stacked orders over $72,000 but also highlight a “liquidity void” From $66,500 to $60,500 The price of the home has dropped from $66,000 down to $60,500. “liquidity void” It can act like a magnet as the price moves quickly to low-liquidity zones to capture concentrated stop clusters.
Even though the liquidity is higher and more obvious, there are still downside risks as an entire stack of leveraged-longs, worth $350,000,000, remains near $65,500.
Bitcoin Trader Husky said Bitcoin’s price is falling below the anchor volume-weighted mean (VWAP), derived from last week’s lows, which was $59,800. This level is acting like a fair value for short term.
The overall market structure is starting to deteriorate, and if there’s no rapid rebound above $68,000 the risks of further downward movement towards lower support near $65,000 are increased. The trader believes that Bitcoin’s price will remain within the $60,000 to $72,000 band for a while.
EliZ, a market analyst, says the same. noted BTC appears to be consolidating at $66,500 in a channel that is descending. A break below this level may send the price toward the $63,400–$64,600 support zone, increasing the odds of a revisit to $60,000.
Related: Bitcoin reacts to major US jobs data beat as Fed rate pause odds near 95%
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Source: cointelegraph.com
