Bitcoin has entered a consolidation phase after failing to break its all-time high this week, leaving bulls awaiting the next big move. Currently, BTC is trading just below its previous peak, but BTC’s inability to exceed this level has led to a temporary reset in momentum.
Key data from CryptoQuant shows a recent increase in long-term BTC liquidations, indicating that bullish traders are facing a short-term shakeout. This wave of liquidations forces leveraged positions to unwind, allowing excess leverage to disappear from the market.
While this has created short-term volatility, it could also lay the groundwork for a new wave. With liquidity recovering, BTC can lay a healthier foundation for a stronger breakout attempt.
Analysts suggest that this consolidation period could be a pivotal moment for BTC, preparing to finally break record highs and make a new move in the market. With the stage cleared for potential volatility, investors are watching closely for signs of renewed momentum Pushing Bitcoin into uncharted territory in the coming days.
Bitcoin liquidity rests above ATH
Bitcoin is currently facing a pivotal moment as liquidity hovers just above all-time highs and bearish sentiment among traders is growing. With key resistance firmly in place, many bears are confident that BTC will struggle to break this critical level in the near term.
Insights shared by Maartunn on X point to a worrying trend: Bitcoin long liquidations across all exchanges are rising rapidly, indicating that leveraged long positions are being squeezed out as the price remains stagnant.
This increase in long-term liquidations could signal a broader market shock, potentially paving the way for a significant liquidity clearing. By driving out bullish retail investors, Bitcoin could set itself up for a rebound that could push prices above previous record highs. Traders are well aware that this could be a crucial turning point as the dynamics of liquidations could create a catalyst for renewed bullish momentum.
However, there remains a significant risk of a further downward trend. Should the price continue to fall, it could lead to even more liquidations and a return to lower demand levels. This scenario would test the resolve of current holders and challenge the market’s overall bullish sentiment.
The coming week is particularly crucial with the US elections approaching, along with the Federal Reserve’s decision on interest rates. These events are likely to have a significant impact on Bitcoin’s price action, making the coming days crucial for both bulls and bears. Investors should remain vigilant and prepare for potential volatility as the market navigates these important developments.
BTC is about to introduce price sensing
Bitcoin is currently trading at $69,700 after testing just below the 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 typically characterized by significant bullish momentum that could propel both BTC and the broader market into a massive bull run. However, for this bullish trajectory to materialize, Bitcoin must confirm a decisive break above its all-time high.
Currently, BTC is holding strong above the key support level at USD 69,000, which is essential to maintain upside momentum. If the price can sustain above this level, it will likely pave the way for a challenge to the previous all-time high. Conversely, if Bitcoin falls below $69,000, it could trigger a pullback to the $66,500 demand level where liquidity could be tested.
The coming days will be crucial for Bitcoin as traders closely monitor the price action to gauge whether the momentum can sustain itself and lead to a breakout above all-time highs. The anticipation surrounding this pivotal moment is palpable, with market participants eager to see how Bitcoin navigates this pivotal moment.
Featured image of Dall-E, chart from TradingView