Bitcoin has seen an 11% price increase since Tuesday, following the Federal Reserve’s announcement of a 50 bps interest rate cut. The news boosted investor confidence, pushing BTC past the $60,000 mark—an important psychological level that swayed market sentiment. Now, BTC is testing local supply levels, with analysts closely watching the next move.
As the market rises, important data suggests that Bitcoin liquidity is concentrated above the $65,000 mark, with an important area around $70,000. This level becomes a focal point for traders and investors eager to confirm the start of a strong uptrend. A break above these supply levels would indicate further momentum for BTC, indicating the potential for new all-time highs.
As the market moves higher, investors are waiting for a definitive close above these key price levels to confirm the bullish trend. If achieved, it could set the stage for a further rally, bringing Bitcoin closer to its next big goals.
Bitcoin Liquidity Rests Above $65,000
Bitcoin is trading at a significant level of supply, but many investors believe that it is only a matter of days before BTC challenges the local high of $65,000.
Key data from Coinglass reveals significant levels of liquidity above $65,000, with a strong focus around the $70,000 mark. According to the Coinglass liquidation heat map, billions of dollars worth of positions are at risk of liquidation at these levels. This presents a significant opportunity for traders, as currency closures often drive sharp price movements.
A foreclosure heat map calculates foreclosure levels based on market data and various average values. These levels are then overlaid on the price chart, which helps traders visualize where a potential close may occur.
Understanding where these closing clusters are can provide a strategic advantage, such as learning the most profitable areas in the order book. Traders who cannot anticipate when a large liquidation may occur can profit from subsequent price movements.
Coinglass’ Heatmap data suggests that Bitcoin will likely target these supply levels to cause a liquidity crunch. As a result, many traders expect BTC to continue pushing higher, with $70,000 emerging as the main target. If Bitcoin reaches this level, it could further bullish sentiment and drive momentum to new all-time highs.
BTC Price Levels to Watch
Bitcoin is trading at $63,641 after several days of consolidation, just below the 200-day moving average (MA) of $63,898. This key indicator represents long-term strength, and BTC has struggled to break above it.
Despite this, Bitcoin did not drop to the lows, indicating that a breakout may be imminent. Many investors believe that it is a few days before BTC recovers the 200 MA and the $65,000 mark, which may further push the momentum.
Bulls are growing more optimistic, especially with the recent shift in market sentiment following the Federal Reserve’s interest rate cut announcement. This has injected new energy into the market, making Bitcoin’s potential rally even greater. However, caution remains, as there is still a chance that Bitcoin could test the lower demand levels around $60,000 before pushing higher.
If BTC fails to close above the 200 daily MA soon, this scenario becomes more likely, with a dip to $60,000 offering another opportunity to buy before the next leg up. Traders look closely for a decisive move in any direction to gauge the market’s next moves.
Featured image from Dall-E, chart from TradingView