After marking a new ATH, Bitcoin once again closes the week below $69,000. Let’s analyze together the future prospects for the BTC price.
Status of Bitcoin (BTC)
After hitting an all-time high at $73,800, Bitcoin saw a decline that countered recently established buying strength. Indeed, this decline formed a bearish structure, bringing the price of BTC to around $63,500. This represents a decrease of approximately 14% from its all-time high (ATH). At the time of writing, the Bitcoin price is trading around $63,500. It is therefore below the main value zone, located around $67,000. The value zone below this price is around $63,000 – $62,000. Below, we can highlight the support zone around $60,000.
Naturally, the gap from the 50-day moving average appears to be rebalancing, as do the oscillators, indicating readjusted market dynamics.
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Focus on derivatives (BTCUSDT)
Unsurprisingly, open interest on BTC/USDT contracts has been revised downwards. We can see that this decline was coupled with a predominantly long liquidation and a drop in the funding rate, suggesting a semblance of buying capitulation. It is important to emphasize that lowering the funding rate can be viewed positively once it is considered excessively high. Indeed, this may indicate a return to balance between the market and its underlying asset, thus helping to reduce the selling pressure that could apply to these contracts.
The liquidation heat map for BTC/USD shows that recently its price crossed a significant liquidation zone around $70,500. The fact that the Bitcoin price remains above this level demonstrates continued buying interest. Currently, the most marked liquidation zones are on either side of the current price: above, the zone of $74,000 stands out, and below, the zone of $50,000 where the most concentration is concentrated. ‘orders. However, a more subtle liquidation zone can be noted in the price range around $58,000 to $56,000, as well as above the current price, between $71,000 and $69,000. As the market approaches these levels, we could see a massive triggering of orders, which would potentially increase the volatility of the cryptocurrency. These areas therefore represent major points of interest for investors.
Hypotheses for the price of Bitcoin (BTC)
- If the price of Bitcoin manages to stay above $62,000, we could see a further rise to $69,000. The next resistance could be $70,000 or even $71,000. Beyond that, the next resistance could be above the ATH or above $74,000. Reaching this last level would mark an increase of approximately +16% $.
- If the price of Bitcoin fails to maintain above $62,000, we could envisage support for buying interest in the $60,000 zone. The next level to take into account, if the bearish movement continues, would be around $58,000 or $56,000. At this stage, this would represent a drop close to – 11%.
Conclusion
Bitcoin has recently undergone a significant 14% correction from its all-time high, now trading around $63,500, below key value areas, while showing signs of market stabilization according to technical indicators. 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 against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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