Market activity over the weekend has seen a significant decrease in trading volume, dropping from last week’s peak of $55 billion to around $12.4 billion. This low volume could potentially lead to increased volatility in the coming days, especially with liquidity concentrated around key levels such as $63,000 and $59,500. As we move further into the week, the release of key economic data such as the FOMC minutes and inflation figures could have a notable impact on market sentiment.
According to analyst Josh of Crypto World, Bitcoin has recently experienced a bounce from a crucial support area. Currently, it is trading within a range that suggests a potential for upward movement, especially as it starts to liquidate some short positions.
On the daily chart, Bitcoin is displaying resilience as it bounces from a significant support range located between $60,200 and $61,200. This zone has proven to be a strong support level in the past, and Bitcoin’s ability to remain above this range in the short term will be essential for maintaining bullish sentiment.
As Bitcoin looks to rally higher, several key resistance levels come into play:
– $63,000: This level is expected to serve as the initial barrier to further gains. A successful breach above this level could spark increased buying interest.
– $64,100 to $64,500: If Bitcoin surpasses $63,000, the next resistance area lies between these values, based on historical price action.
– $67,000 to $68,000: This range represents a significant resistance level that must be overcome for a more definitive bullish trend to emerge. A breakout above this area would signal a strong shift in market sentiment.
There is a notable amount of liquidity just below the current price, particularly in the range of $59,600 to $59,800. This area may serve as a safety net, offering support in case the price begins to retreat. If Bitcoin were to dip below its current support levels, this liquidity could help stabilize the price.
As we navigate through the market fluctuations and upcoming economic data releases, it will be crucial to monitor Bitcoin’s performance at key levels and assess how market sentiment evolves in response to external factors.