U.Today – The price has raised some questions about the future of digital gold with a rally around $69,000, but perhaps some answers can be found in Bitcoin’s liquidation heat map, with critical levels at $68,300 and $69,800 highlighting their importance for short-term price movements.
It is clear from this heat map that liquidity is trending around the prices of $68,300 and $69,800. They correspond to areas where mighty buying and selling pressure is concentrated, which makes them crucial for Bitcoin’s next moves. Of course, at the current price level of $69,000, these could easily act as really mighty support and resistance zones that will chart Bitcoin’s path in the coming days.
Technically, this is the channel where Bitcoin has been trading, with the 50-day moving average providing good support around $65,000. An RSI above 50 indicates that the bulls have a slight advantage, but the market shows no signs of being overbought. A balanced RSI indicates room for Bitcoin to move in either direction.
This is a very essential level because the $68,000 area is a huge support. If the price action falls directly into this price area, it could actually create buying pressure that will support the price there. There is a lot of liquidity at this level, so it would indicate that many traders are placing their buy orders in anticipation of a bounce from this area.
There is an essential resistance area around $69,800. A break above this level would signal the beginning of an intense buying flow and thus could drive Bitcoin to fresh highs. The accumulation of liquidity at $69,800 signals that the majority of the sell-side volume is located there and this is where Bitcoin needs to chew up to continue to climb higher.
Nevertheless, the overall market sentiment around Bitcoin remains positive, given increased institutional interest and growing adoption. In any case, the short-term outlook will depend entirely on how Bitcoin behaves towards these key levels. Either a rebound of the $68,000 support or a break above $69,800 would set the stage for another significant move.
