Bitcoin (BTC), as it approaches the key zone of liquidity, has seen traders place new orders for buys near $70,00. The order book data indicates that more than 500 million dollars in bid liquidity exists between $72,000-$70,000. This is a zone of demand which may influence BTC’s next moves.
BTC buy bids form key support zone
CoinGlass data shows that dip buyers placed 6,235 BTC as bid liquidity in the range of $72,000 to $70,000. The buy orders, at current prices are valued at approximately $443 Million.
The biggest cluster is located directly over $70,000 where the buyers are in a position to absorb any current selling pressure. Limit buy orders are referred to as bid liquidity. If the price moves into those buy orders, this can trigger a sudden rebound when demand consumes BTC supplies.
BTC/USD chart for one day, with buy liquidation analysis. Source: Velo chart
Under $70,000 the second notable demand pocket is $68,505, at which traders placed 1,012 BTC valued at approximately $69 Million. The order book is thinned out considerably below that price, and there are few bids visible.
Data from the liquidation heatmap indicates that about 2 billion dollars in long positions cumulatively are on risk around $70,000. This compares to over $5 billion worth of short positions located at $78,000. BTC may experience a rapid rebound in the liquidation zone above $70,000 once it taps into the cluster of bids near that price.
BTC liquidation map. CoinGlass is the source for this map.
Related: Bitcoin falls out of the global top 10 assets as market cap dips below $1.5T
RSI is at a new low of three months as BTC daily trend goes bearish
Bitcoin’s daily pattern turned negative after it lost support at $74,800. This confirmed a pattern with lower highs, and lower lows. The price is trading inside a descending channel and is currently testing support near the lower boundary around $72,000–$73,000.
The relative strength (RSI), which measures the market’s overall stability, has dropped to approximately 33. This is its lowest point since February 24. Momentum has consistently stayed under the neutral level of 50 during the recent price decline. This suggests that the sellers continue to control short-term pricing.
BTC/USD, one-day chart. Source: Cointelegraph/TradingView
Ardi Crypto Trader outlined A similar opinion. The analyst said the $74,500–$75,500 region now acts as resistance across multiple time frames. The analyst said that a rejection of this area would keep the focus in the $71,500 range, while an upward move to channel resistance at $76,000 could challenge the downtrend.
The options market shows that investors are also preparing to move towards $70,000. According to GlassnodeIn the latest dip, traders bought put options at a strike price of $70,000.
When prices decline, put options gain in value. This makes them an effective hedge against risk. The recent flows indicate a slight easing of protection as traders secure profits. However the concentration in hedging activities highlights the close attention the market pays to the $70,000 price level.
BTC market analysis for $70,000. Source: Glassnode/X
Related: Bitcoin’s major holders halt buys as demand slows: CryptoQuant
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Source: cointelegraph.com
