Bitcoin has entered a consolidation phase after failing to break its all-time high this week, leaving bulls waiting for the next big move. BTC is currently trading just below its previous peak, and BTC’s inability to surpass this level has temporarily reset momentum.
Key data from CryptoQuant shows a recent rise in long BTC liquidations, suggesting that bullish traders are facing a short-term shakeout. This wave of liquidation forces leveraged positions to pull back, which may remove excess leverage from the market.
While this has created near-term volatility, it could also pave the way for a new rally. As liquidity resets, Bitcoin may create a healthier foundation for a stronger breakout attempt.
Analysts point out that this period of consolidation could be a pivotal moment for Bitcoin, setting it up to break its all-time highs and drive a new move higher in the market. With the stage set for potential volatility, investors are closely monitoring signs of renewed momentum that could push Bitcoin into uncharted territory in the coming days.
Bitcoin liquidity stabilizes above ATH
Bitcoin is currently facing a pivotal moment as liquidity is hovering above all-time highs, and bearish sentiment is growing among traders. With major resistance firmly in place, many bears are confident that BTC will struggle to break through this critical level in the near term.
Thoughts shared by Maartunn on X Highlighting a worrying trend: Bitcoin long liquidations across all exchanges are increasing rapidly, indicating that leveraged long positions are being squeezed out as the price remains stagnant.
This increase in long liquidations may indicate a broader market shakeout, which could set the stage for a major liquidity sweep. By driving out bullish retail investors, Bitcoin may be preparing for a comeback that could push prices beyond their previous all-time highs. Traders are keenly aware that this could be a crucial turning point, as liquidation dynamics may create a catalyst for renewed upward momentum.
However, there is still a high risk of further decline. If the price continues to decline, this could lead to further liquidations and a pullback to lower demand levels. This scenario would test the resolve of existing shareholders and challenge the overall upside of the market.
Next week is particularly crucial with the US elections approaching, along with the Federal Reserve’s decision on interest rates. These events are likely to impact Bitcoin’s price movement significantly, making the next few days crucial for bulls and bears alike. Investors should remain vigilant and prepare for potential volatility as the market navigates these key developments.
BTC is about to enter price discovery
Bitcoin is currently trading at $69,700 after testing the 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 that typically features significant upward momentum that can push both BTC and the broader market into a massive bull run. However, for this upward trajectory to materialize, Bitcoin must confirm a decisive breakout above the all-time high.
Currently, BTC is maintaining strength above the key support level of $69,000, which is essential to maintain bullish momentum. If the price can continue above this level, it will likely pave the way for a challenge to the previous all-time high. Conversely, if Bitcoin price drops below $69,000, it could trigger a pullback towards the $66,500 demand level, where liquidity may be tested.
The next few days will be crucial for Bitcoin, as traders are watching the price action closely to gauge if the momentum can sustain itself and lead to a breakout of the all-time high. The anticipation surrounding this pivotal moment is palpable, as market participants are eager to see how Bitcoin navigates this crucial juncture.
Featured image by Dall-E, chart from TradingView