bitcoin has seen a significant 11% price increase since Tuesday, following the Federal Reserve’s announcement of a 50 basis point interest rate cut. This news boosted investor confidence, pushing btc above the $60,000 mark, an important psychological level that changed market sentiment. Now, btc is testing local supply levels, and analysts are closely watching the next moves.
As the market moves higher, crucial data suggests that bitcoin liquidity is concentrated above the $65,000 mark, with a key zone around $70,000. This level is becoming the focal point for traders and investors eager to confirm the start of a stronger uptrend. Surpassing these supply levels would signal further momentum for btc, indicating the potential for new all-time highs.
With the market on the uptrend, investors are hoping for a decisive close above these critical price levels to confirm the bullish trend. If achieved, it could set the stage for a sustained rally, bringing bitcoin closer to its next major targets.
bitcoin liquidity remains above $65,000
bitcoin is trading at a crucial supply level, but many investors believe it is only a matter of days before btc challenges local highs around $65,000.
Coinglass Key Facts reveals significant liquidity levels just above $65,000, with a strong concentration around the $70,000 mark. According to Coinglass’ liquidation heatmap, billions of dollars of positions are at risk of being liquidated at these levels. This presents a significant opportunity for traders, as liquidations often lead to sharp price movements.
The liquidation heatmap calculates liquidation levels based on market data and various leverage amounts. These levels are then overlaid on the price chart, helping traders visualize where potential liquidations may occur.
Understanding where these liquidation clusters are located can provide a strategic advantage, similar to reading areas of high liquidity in the order book. Traders who can anticipate where large liquidations may occur can position themselves to take advantage of subsequent price volatility.
Coinglass heatmap data suggests that bitcoin will likely target these supply levels to trigger liquidity. As a result, many traders expect btc to continue to rise, with $70,000 emerging as a key target. If bitcoin reaches this level, it could further fuel bullish sentiment and boost momentum towards new all-time highs.
btc Price Levels to Watch
bitcoin is trading at $63,641 after several days of consolidation, just below the 200-day daily moving average (MA) of $63,898. This key indicator represents long-term strength and btc has struggled to break above it.
Despite this, bitcoin has not fallen to lower levels, indicating that a breakout may be imminent. Many investors believe that it is only a matter of days before btc reclaims the 200-day moving average and the $65,000 mark, which could fuel further bullish momentum.
Bulls are becoming more optimistic, especially with the recent shift in market sentiment following the Federal Reserve’s announcement of interest rate cuts. This has injected new energy into the market, making a potential bitcoin rally more likely. However, caution remains as there is still a chance that bitcoin could test lower demand levels around $60,000 before moving higher.
If btc fails to close above the 200-day moving average soon, this scenario becomes increasingly likely, with a drop to $60,000 offering another buying opportunity before the next leg higher. Traders are looking for a decisive move in either direction to gauge the market’s next steps.
Featured image of Dall-E, chart from TradingView
