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As Bitcoin sinks below this key zone, what should you do now?

2min Read

The liquidation levels showed that short positions vastly outnumbered the long ones, which could aid a short-term price bounce.

As Bitcoin sinks below this key zone, what should you do now?
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  • Bitcoin short-term whales are underwater, which likely presented an ideal buying opportunity
  • Metrics resembled how they were before the previous major bull run

Bitcoin [BTC] sank below the key demand zone at $60k.

This region had held the sellers at bay but eventually gave way. Crypto technical analyst CrypNuevo highlighted that we might get a post-FOMC bounce to $61k in a post on X (formerly Twitter).

Should traders expect to see the $60k former support reclaimed? Alternatively, should they look to go short upon a retest? Here’s what market participants could watch out for before making their next move.

The current breakdown has been on a high trading volume

BTC 4-hour TradingView

Source: BTC/USDT on TradingView

The key levels are $59.4k and $60.7k in the short term. A cluster of liquidity is likely present near these levels, marking them as critical areas where a bearish continuation could occur.

Such a continuation is expected because the OBV has fallen below two-week support, highlighting selling pressure dominance.

Bitcoin Liquidation Levels

Source: Hyblock

The liquidation levels showed that the cumulative liq levels delta was vastly negative. Therefore, we can expect a move upward in the short-term to collect liquidity and wipe out the imbalance.

The $60.5k and the $63.8k levels had the highest cluster of liquidation levels. Hence, a move to these levels before a reversal southward is anticipated.

Of golden and death crosses

Bitcoin Realized UTXO

Source: CryptoQuant

In a CryptoQuant Insights post, user CoinLupin pointed out an interesting development.

Looking at the realized UTXO age bands, the onset of major bull runs came when the realized price of 1-3 month and 2-3 year bands saw a smoothing process.

This happened in 2020 from January to September, and prices tend to consolidate near the realized prices of these age bands.


Read Bitcoin’s [BTC] Price Prediction 2024-25


In the current cycle, there were not as many golden and death crosses between these two age bands.

However, the recent pullback could be followed by deeper losses as savvy market participants buy from impatient BTC sellers. This could be followed by the true bull run, the analyst pointed out.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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