Bitcoin has seen a massive 11% price surge since Tuesday, following the Federal Reserve’s announcement of a 50 basis point interest rate cut. The news boosted investor confidence, sending Bitcoin above $60,000 — a key psychological level that has changed market sentiment. Now, Bitcoin is testing its local supply levels, with analysts closely watching its next moves.
As the market surges, crucial data suggests that Bitcoin liquidity is concentrated above the $65,000 level, with a key area around $70,000. This level has become a focal point for traders and investors keen to confirm the start of a stronger uptrend. Breaking through these supply levels would signal further momentum for Bitcoin, suggesting that new all-time highs could be reached.
As the market rises, investors are waiting for a decisive close above these critical price levels to confirm the uptrend. If that happens, it could pave the way for a sustained rally, bringing Bitcoin closer to its next major targets.
Bitcoin liquidity stabilizes above $65K
Bitcoin is trading at an important supply level, but many investors believe it is only a matter of days before Bitcoin challenges local highs around $65,000.
Key data from Coinglass It reveals significant liquidity levels just above $65,000, with a strong concentration around the $70,000 mark. According to Coinglass’ liquidation map, billions of dollars of positions are at risk of being liquidated at these levels. This presents a significant opportunity for traders, as liquidations often lead to sharp price movements.
The heatmap calculates liquidation levels based on market data and different leverage amounts. These levels are then overlaid on the price chart, helping traders visualize where potential liquidations may occur.
Understanding where these liquidation pools are located can provide a strategic advantage, similar to reading areas of high liquidity in the order book. Traders who can anticipate where large liquidations are likely to occur can position themselves to profit from subsequent price fluctuations.
Coinglass’ heatmap data suggests that Bitcoin is likely to target these supply levels to stimulate liquidity. As a result, many traders expect BTC to continue to rally, with $70,000 emerging as a key target. If Bitcoin reaches this level, it could increase bullish sentiment and drive momentum towards new all-time highs.
Bitcoin Price Levels to Watch
Bitcoin is trading at $63,641 after several days of consolidation, just below the 200-day moving average (MA) of $63,898. This key indicator represents long-term strength, and Bitcoin has struggled to break through it.
However, Bitcoin has not fallen to lower levels, suggesting that a breakout could be imminent. Many investors believe that it is only a matter of days before Bitcoin reclaims the 200 moving average and the $65,000 level, which could fuel further bullish momentum.
The bulls have become more optimistic, especially with the recent shift in market sentiment after the Federal Reserve announced an interest rate cut. This has injected new energy into the market, making a potential Bitcoin rally more likely. However, caution remains, as there is still a chance for Bitcoin to test the lower demand levels around $60,000 before rallying.
If Bitcoin fails to close above the 200-day moving average soon, this scenario becomes increasingly likely, with a drop to $60,000 providing another buying opportunity ahead of the next leg of the rally. Traders are closely watching for a decisive move in either direction to gauge the market’s next moves.
Featured image by Dall-E, chart by TradingView
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