BTC Needs to Break This Level to Aim for a New All-Time High (Bitcoin Price Analysis)

8 months ago 7

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Bitcoin’s price is currently consolidating below the $70K level, failing to continue its rally and make a higher all-time high. Yet, investors remain optimistic as no worrying signs are surfacing yet.

Technical Analysis

By TradingRage

The Daily Chart

On the daily chart, the price has been hovering around the $70K mark and is yet to show a prolonged movement to either side.

The $68K resistance level is currently being tested, but the price has not been able to break it to the upside. In case a bullish breakout finally occurs, the market seems likely to set a new all-time high and attack the $80K region. On the other hand, a definitive rejection would result in a deeper decline toward the $60K support zone.

The 4-Hour Chart

Looking at the 4-hour chart, the market has created new short-term support around the $64K mark after rebounding from the level last week. Yet, the $68K has held the price, preventing a run toward $70K and beyond.

The short-term fate of the market hangs in the balance at the moment, as a breakout to either side could result in a larger move.

The Relative Strength Index is also oscillating around the 50% level, indicating that the momentum is neutral and neither a bullish nor a bearish move is more probable.

On-Chain Analysis

By TradingRage

Binance BTC/USDT Liquidation Heatmap

There is no denying the deep influence of the perpetual futures market on Bitcoin’s price action. Most short-term price moves, especially those after periods of consolidation, are caused by liquidations in the futures market. Therefore, painting a picture of where the most liquidity potentially resides can be very helpful.

This chart represents the Binance BTC/USDT heatmap. It predicts the price levels at which large-scale liquidation events may occur. So, when Bitcoin reaches areas with yellow color, a liquidation cascade is likely to materialize.

As the chart depicts, the $64K-$65K zone is filled with massive liquidity, and if the price reaches these levels, a large liquidation cascade could happen that would result in a rapid drop toward the $60K level.

Similarly, if the market climbs toward the $70K level, it is likely to surge rapidly as a result of a short liquidation cascade, and a new all-time high would be highly probable. These levels can be used as reference points in the short term and could determine the market trend in the coming weeks.