bitcoin has entered a consolidation phase after failing to surpass its all-time high this week, leaving bulls waiting for the next big move. Currently trading just below its previous peak, btc's inability to break above this level has led to a temporary reset of momentum.
Key data from CryptoQuant shows a recent surge in btc long liquidations, indicating that bullish traders are facing a near-term shakeup. This wave of liquidations is forcing leveraged positions to be liquidated, which could remove excess leverage from the market.
While this has created short-term volatility, it could also set the stage for a further rise. As liquidity is restored, btc may be establishing a stronger foundation for a stronger breakout attempt.
Analysts suggest that this consolidation period could be a pivotal moment for btc, setting it up to finally surpass all-time highs and drive a new market advance. With the stage set for potential volatility, investors are watching for signs of renewed momentum that could propel bitcoin into uncharted territory in the coming days.
bitcoin Liquidity Above ATH
bitcoin is currently facing a pivotal moment as liquidity sits just above its all-time highs and bearish sentiment grows among traders. With key resistance firmly established, many bears are confident that btc will struggle to break above this critical level in the near term.
x.com/JA_Maartun/status/1852378508799901769″ target=”_blank” rel=”noopener nofollow”>Perspectives shared by Maartunn on x Highlighting a worrying trend: bitcoin long liquidations across exchanges are increasing rapidly, suggesting that leveraged long positions are being eliminated as the price remains stagnant.
This increase in long-term liquidations could mean a broader market shakeout, which could set the stage for a significant wave of liquidity. By driving out bullish retail investors, bitcoin may set itself up for a resurgence that could push prices beyond previous all-time highs. Traders are well aware that this could be a crucial turning point as the sell-off dynamics could create a catalyst for renewed bullish momentum.
However, there remains a considerable risk of further declines. If the price continues to decline, it could lead to even more liquidations and a pullback towards lower demand levels. This scenario would test the resolve of current holders and challenge the overall bullish market sentiment.
Next week is particularly critical as the US election approaches, along with the Federal Reserve's decision on interest rates. These events are likely to significantly impact bitcoin price action, making the next few days crucial for both bulls and bears. Investors should remain vigilant and prepare for potential volatility as the market navigates these key developments.
btc about to enter price discovery
bitcoin is currently trading at $69,700 after testing supply just below its all-time high of $73,794. As the market leader approaches this critical resistance, it is about to enter a price discovery phase, a time typically characterized by significant bullish momentum that can push both btc and the broader market into a run. massive bullish. However, for this bullish trajectory to materialize, bitcoin must confirm a decisive break above the all-time high.
Currently, btc remains strong above the key support level of $69,000, which is essential to maintain bullish momentum. If the price can sustain above this level, it will likely set the stage for a challenge against the previous all-time high. Conversely, if bitcoin falls below $69,000, it could trigger a pullback towards the demand level of $66,500, where liquidity may be tested.
The next few days will be critical for bitcoin as traders closely monitor the price action to assess whether the momentum can be sustained and lead to a break above the all-time high. The anticipation surrounding this pivotal moment is palpable, and market participants are eager to see how bitcoin navigates this crucial juncture.
Featured image of Dall-E, TradingView chart
