Bitcoin’s price is currently consolidating below the $70K level, failing to continue its rally and make a higher all-time high. Yet, investors remain optimistic as no worrying signs are surfacing yet.
By TradingRage
On the daily chart, the price has been hovering around the $70K mark and is yet to show a prolonged movement to either side.
The $68K resistance level is currently being tested, but the price has not been able to break it to the upside. In case a bullish breakout finally occurs, the market seems likely to set a new all-time high and attack the $80K region. On the other hand, a definitive rejection would result in a deeper decline toward the $60K support zone.
Looking at the 4-hour chart, the market has created new short-term support around the $64K mark after rebounding from the level last week. Yet, the $68K has held the price, preventing a run toward $70K and beyond.
The short-term fate of the market hangs in the balance at the moment, as a breakout to either side could result in a larger move.
The Relative Strength Index is also oscillating around the 50% level, indicating that the momentum is neutral and neither a bullish nor a bearish move is more probable.
By TradingRage
There is no denying the deep influence of the perpetual futures market on Bitcoin’s price action. Most short-term price moves, especially those after periods of consolidation, are caused by liquidations in the futures market. Therefore, painting a picture of where the most liquidity potentially resides can be very helpful.
This chart represents the Binance BTC/USDT heatmap. It predicts the price levels at which large-scale liquidation events may occur. So, when Bitcoin reaches areas with yellow color, a liquidation cascade is likely to materialize.
As the chart depicts, the $64K-$65K zone is filled with massive liquidity, and if the price reaches these levels, a large liquidation cascade could happen that would result in a rapid drop toward the $60K level.
Similarly, if the market climbs toward the $70K level, it is likely to surge rapidly as a result of a short liquidation cascade, and a new all-time high would be highly probable. These levels can be used as reference points in the short term and could determine the market trend in the coming weeks.
