Bitcoin Hits $70,000 Before Dropping! Analysis for July 30, 2024

As Bitcoin hit $70,000, the cryptocurrency faced selling pressure, lowering its price slightly. Let’s analyze together the future outlook for the BTC price.

Bitcoin (BTC) Price Status

After bouncing back and re-entering $60,000, the Bitcoin price continued to rise, allowing the break of $63,900. From a technical point of view, this helped validate the idea of ​​a change in structure in the short term. Bitcoin then continued to rise as best it could and ended up reaching $70,000 early in the afternoon on July 29. Unfortunately, it seems that this level triggered selling interest, which caused the cryptocurrency to fall in the process and mark a low point at $66,500.

At the time of writing, the Bitcoin price is trading around $67,100. Thus, it seems that BTC has attracted a slight buying interest. However, this still seems weak. As a result, we can note the support zone identified around $63,500 and $62,500. If the decline continues, a rebound will be desired at this level. On the medium-long term trend of Bitcoin, it remains bullish, although the cryptocurrency has been in a range phase for several months. This can be supported by the fact that Bitcoin is trading above its 50 and 200-day moving averages. Unsurprisingly, the Bitcoin price dynamics have calmed down. This is reflected in the price of BTC itself as well as the oscillators. All of these elements leave room for uncertainty as to the continuation of the bullish movement that has recently begun.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.

Zoom on derivatives (BTCUSDT)

Bitcoin perpetual contracts open interest appears to be increasing more significantly than its underlying, as shown by its price. This reflects significant interest from speculators. Given the cryptocurrency’s rise and still positive funding rates, it appears that the majority of traders are biased towards buying. As for liquidations, we can observe a recent capitulation of the last buyers with pronounced liquidations of long positions.

The liquidation heatmap of the past few months indicates that BTC/USDT has come into contact with the liquidation zone around $70,000. The cryptocurrency reacted negatively, generating selling interest at this level. Currently, Bitcoin is moving towards the liquidation zone around $63,400 – $62,100. Further below, we can note the subtle zones identified around $59,000 and $56,200. However, the most prominent liquidation zone is above the current price, between $72,000 and $73,000. If the market approaches these levels, we could see a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. These areas therefore represent major points of interest for investors.

Bitcoin (BTC) Price Hypotheses

• If the Bitcoin price holds above $62,500, we could anticipate a bullish continuation causing the break of $70,000. The next resistance to consider would then be around $71,700. If the bullish movement continues, this could suggest reaching the ATH of BTC at $73,750. At this point, this would represent an increase of more than 10%.

• If Bitcoin fails to hold above $62,500, we could see a return to around $60,300. The next support to consider, if the bearish move continues, would be just below $58,000. Further down, we can see support at $56,500. At this point, this would represent a decline of around 15%.

Conclusion

After showing a notable rise, Bitcoin is now facing selling pressure. Although the medium-long term trend remains bullish and optimism is high, the market seems hesitant, reflecting a calmer and more cautious dynamic. Thus, it will be crucial to carefully observe the price reaction at the different key levels to confirm or deny the current hypotheses. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly depending on other more fundamental factors.