After reaching a new ATH, Bitcoin closes the week again below $69,000. Let’s analyze the future outlook for BTC price together.
Bitcoin (BTC) Situation
After reaching an all-time high at $73,800, Bitcoin experienced a decline that counteracted the recently established purchasing power. Indeed, this drop has formed a bearish structure, pulling BTC’s price back to around $63,500. This roughly represents a 14% decline from its all-time high (ATH). At the time of writing, the Bitcoin price is trading around $63,500. So it’s below the main value zone, which is about $67,000. The value zone below that price is around $63,000 – $62,000. Below that, we can highlight the support zone around $60,000.
Of course, the gap appears to be rebalancing with the 50-day moving average, as well as the oscillators, indicating readjusted market dynamics.
The current technical analysis was done in collaboration with Elie FT, an investor and trader of passion in the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of own traders active since 2017. It offers lives, educational content, and mutual assistance regarding financial markets in a professional and warm atmosphere.
Focus on Derivatives (BTCUSDT)
Not surprisingly, open interest in BTC/USDT contracts has been revised downward. We can see that this decline was accompanied by mainly buyer liquidations and a decrease in the funding rate, suggesting a semblance of buyer capitulation. It is important to note that a decrease in the funding rate can be viewed positively as soon as it is considered excessively high. Indeed, this may signal a return to equilibrium between the market and its underlying asset, thereby helping to reduce the selling pressure that can be applied to these contracts.
The liquidation heatmap for BTC/USD shows that its price recently crossed a significant liquidation zone around $70,500. The fact that the Bitcoin price remains above this level is evidence of persistent buying interest. Currently, the most marked liquidation zones are on either side of the current price: above, the $74,000 zone stands out, and below, the $50,000 zone where a concentration of orders is located. However, a more subtle liquidation zone can be noted in the price range around $58,000 to $56,000, and above the current price, between $71,000 and $69,000. As the market approaches these levels, we could see a massive trigger of orders, potentially increasing the volatility of the cryptocurrency. These zones therefore represent important points of interest for investors.
Scenarios for the Bitcoin (BTC) Price
If Bitcoin’s price manages to hold above $62,000, we can consider a new increase to $69,000. The next resistance could be $70,000 or possibly $71,000. Furthermore, the next resistance could be above the ATH, which is above $74,000. Reaching this last level would be an increase of around +16%. If Bitcoin’s price fails to hold above $62,000, we can consider support from buying interest in the $60,000 zone. The next level to consider if the downward move continues would be around $58,000 or possibly $56,000. At this point, this would represent a drop close to -11%.
Closure
Bitcoin recently underwent a significant 14% correction from its all-time high, and is now trading around $63,500, below key value zones, while technical indicators show signs of market stabilization. However, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant in every scenario against potential “false cutouts” and market “pinches”. Finally, let’s remember that these analyzes are based solely on technical criteria, and the price of cryptocurrencies can otherwise move quickly based on more fundamental factors.
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Family Trading is a community of own account traders active since 2017 that offers lives, educational content and mutual assistance around the financial markets, including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto -market.
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