Bitcoin
No downtrend confirmation, bulls will soon revisit $67,000 levels
The price of Bitcoin has kept investors on edge, with no clear confirmation of the market being bullish or bearish. As expected, price action over the weekend was relatively subdued, with low volatility and a slight upside relief. There has been a lingering question about how we could be in a bull market if the price consolidated sideways for months, which is not typically seen as bullish.
Crypto World Analyst Josh did a detailed analysis of the price trend and said that the chart has not changed much in recent days despite the short-term pullback. Currently, the Bollinger Bands indicator is still heavily compressed, indicating contraction in the 4-day period.
This suggests that the Bollinger Bands width indicator is at very low levels, the lowest seen in a long time. Historically, this usually precedes a massive and volatile movement in the price of Bitcoin, which is likely to occur soon. These volatile movements are typically 20-30% or even higher.
What is the current scenario?
For now, as long as the price maintains above the previous lows, which are around $60,000 based on candle closes (with the actual low at around $56,000), Bitcoin can technically remain in an upward trend. highest market high. However, this can happen during a larger uptrend.
If Bitcoin falls again in the short term, it will need to stay above at least $56,000. If it falls below this level, we could start talking about the end of the bull market. But so far, this has not been confirmed. We could be in for another massive sideways consolidation, which does not necessarily signal the end of the bull market.
What is the next?
Recently, Bitcoin retested a previous support area, now acting as resistance around $67,000 to $68,000. A break below this level confirmed it as new resistance, aligning with the volume profile indicator, which shows a huge cluster of volume trading around $67,000 to $68,000. The next major cluster of volume support is around $63,000 to $64,000.
The Bitcoin liquidation heatmap shows significant liquidity around $64,600 to $65,000, with new liquidity increasing around $67,300 to $67,400. This indicates that the price may revisit this resistance area before potentially seeing another rejection, considering the substantial resistance there.