Crypto LP analyst declared that Bitcoin has not seen real lower formation however, despite the price looking to create robust support at current levels. This comes as BTC looks to recover the psychological $70,000 as a result of the US-Iran ceasefire talks.

Bitcoin is still at risk as the price has not yet bottomed out

In Post XThe LP stated that Bitcoin has not hit a true bottom and suggested that the leading cryptocurrency is not yet close to the bottom. He referred to the previous one bear cyclesnoting that the lows formed after repeated low moves forced a capitulation before BTC made a reversal.

However, the analyst noted that this time was different as Bitcoin has been consistently clearing highs, making it tough to enter brief positions, leaving lows exposed and building liquidity below. He stated that it is likely a matter of time before target prices are lowered, which could then lead to a proper process of bottoming out before reaching next bull cycle.

LP said that when this collapse does eventually occur, market participants need to keep a close eye on the price action. He noted that a true bottom is likely to form when price begins to repeatedly cross the lows, making it psychologically tough to enter long positions. It is worth noting that Bitcoin has been in a recovery phase since its February 6 lows and has yet to make a up-to-date low.

There has been a revival of Bitcoin the American-Iranian warwith the leading cryptocurrency holding well above key support levels despite escalating tensions. BTC now wants to regain the psychological level of $70,000 reports that the US and Iran are working on a 45-day ceasefire that will end the war.

A drop to $63,000 is still on the cards

In another Post XLP stated that it is only a matter of time before the $63,000 level is exceeded. He noticed it the price remains confined and that both sides will continue to be chopped, but the goal remains clear. Therefore, the analyst suggested that the best approach is to go to the extreme ends of the range. “Even with the bearish HTF bias, 63-62k stands out as a solid area for long hedges compared to shorts from 73k.” – he added.

When commenting on lower time frames, LP noted this brief clusters with high leverage have cleared while larger clusters remain overhead, reaching the $75,000 level. Meanwhile, on the downside, he found long liquidation clusters building around $66,000, adding liquidity below. Overall, the analyst revealed that liquidity remains more focused on the upside, but as long as the price remains within the range, both sides are likely to settle.

At the time of writing, Bitcoin is trading at around $69,100, up over 3% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Getty Images, chart from Tradingview.com