Even though Bitcoin is trading at the lower levels of the monthly trading range, it is unlikely that the first cryptocurrency will have trouble rising, considering the current liquidity distribution. The chart provided shows that most of the selling pressure is well above the $70,000 threshold, and the only thing needed for a reversal right now is some buying. volume.
Even though Bitcoin is trading at the lower levels of the monthly trading range, it is unlikely that the first cryptocurrency will have trouble rising, considering the current liquidity distribution. The chart provided shows that most of the selling pressure is well above the $70,000 threshold, and the only thing needed for a reversal right now is some buying. volume.
Liquidity in the range of $70,000 to $80,000 indicates a significant concentration of liquidation leverage. Given the higher level liquidity, it is possible that Bitcoin will quickly rise to these high liquidity zones once it begins to recover.
Below these levels, selling pressure is much lower, fostering an environment conducive to price growth. Right now, Bitcoin is finding support slightly above its 200-day moving average at $57,000. Bullish momentum must hold this technical support level. The path to $72,500 and beyond becomes more accessible if Bitcoin can hold this support and buyers step in. In this case, market liquidity dynamics are crucial.
Denys SerhiichukSignificant buying activity can trigger a chain reaction of liquidations that will quickly drive the price higher because there is ample liquidity above $70,000. Furthermore, historical patterns and market behavior indicate that when liquidity is strongly skewed upward, Bitcoin frequently experiences abrupt increases in value.
Alex DovbnyaIncreased buying volume and optimistic market sentiment could act as catalysts for this upward trajectory, so traders and investors should keep an eye on them. In conclusion, there is a good opportunity for Bitcoin to possibly reach $72,500 based on liquidity distribution and technical support levels.
Even though recent price declines make market sentiment appear bearish, underlying liquidity indicates that a significant rally may be approaching. It is advisable to remain attentive to buying opportunities and market indicators that may indicate the beginning of this expected movement.
