Bitcoin bulls seemed to take control of the price last week, eventually pushing it above $73,000 again. There has been a slowdown since then, with bears trying to retest the $70,000 level over the weekend. For now, the bulls are still open, but there is still the possibility of the price crashing again. To this end, the Bitcoin price has an critical support level that needs to be maintained if the bulls actually intend to maintain the uptrend.
The magic point for Bitcoin is $70,500
After initially rejecting from the highs of the range, Bitcoin’s price is now approaching a key level. According to a cryptocurrency analyst Maximum tradesis currently heading towards the next critical support level that the bulls need to hold. This level is only $70,500, i.e main support from the beginning of the uptrend.
Maintaining this key level of support is critical because the continuation of the upward trend will depend on it. Right now, the top of the range is still above $72,000, so that’s where the bears are putting up the most resistance. So, the price will need to break the upper range to continue rising, or break key support to resume the downtrend.
Another critical thing that brings the price down is the fact that there is still a gap for CME that has not been filled yet. The CME gap is below $67,000, which attracts bears. That being said, if Bitcoin price eventually breaks through the key support at $70,500, then it will begin to weaken the bullish structure that began to emerge last week.
A move towards the gap on the CME would mean a break below $67,000 and head towards $66,000 to bottom. However, even this would not mean that this is the bottom of the downtrend, as there is room to move further down to gain more liquidity.
The main liquidity levels are below $65,000, which is where the whales can move to make the most of this move. This means that if a key support was broken, it would be just the beginning of a trend. The final move would be: cascading event which would send him even lower.
However, a cryptocurrency analyst clarifies that Bitcoin’s price is not currently bearish. This is because the price remains range-bound and trading above a key support level keeps it there. “The important point to remember is that BTC is still range-bound and as long as it remains that way, the price will be primarily liquidity driven, hunting both ways.”
Featured image from Dall.E, chart from TradingView.com
