Bitcoin is currently facing resistance in the price range of $68,000 to $69,000. Despite its efforts to break through this resistance, it has struggled to maintain momentum above $67,300, which has now become a key support level. So, what is causing Bitcoin to struggle against this resistance? Let’s delve deeper into the reasons behind this.
Bitcoin has entered a challenging area filled with various resistance levels, with the major hurdle being at $69,000. The price has recently fallen below the $68,300 support level, turning it into a strong resistance zone. The rejection at this level can be attributed to factors such as Crypto Whale Activities, as highlighted in previous analyses.
Analyzing the liquidity chart for Bitcoin reveals a lack of buyers in the current zone, indicating a potential price drop towards $68,000 and below. Additionally, whale order data suggests that significant traders are waiting for Bitcoin to rise slightly before shorting it. The imbalance between sellers and buyers in the upper zone may lead to a price correction if new long traders do not step in to balance the equation.
In the past 24 hours, the liquidation value for Bitcoin trades has been relatively low, with around $87.97 million worth of trades getting liquidated, mainly belonging to short traders. Approximately 37,000 traders were affected by these liquidations, indicating a bearish sentiment in the market.
Considering the whale data and liquidity zones, it appears that Bitcoin is poised for a price correction. While indicators like RSI and MACD are concerning, there are buyers present in the current zone who may support the price in case of a plummet. The critical area to watch is between $68,300 to $69,400, as crossing this range could provide strong support for Bitcoin’s price. However, external events can also influence price volatility, so caution is advised.
In conclusion, Bitcoin’s struggle against the current resistance can be attributed to a combination of factors such as whale activities, liquidity imbalance, and market sentiment. While the near-term outlook may appear bearish, Bitcoin has a history of making comebacks, and with the support of buyers in key zones, it may overcome the current challenges. Stay vigilant for potential price movements and be prepared for any market fluctuations.