Armand Sirignan
Bitcoin's price performance is murky, but on-chain metrics provide some answers
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Bitcoin’s price surge near the $69,000 mark has raised several questions about the digital gold’s future, but a look at the Bitcoin liquidation heat map may provide some answers, with key levels at $68,300 and $69,800 highlighting the significance of near-term price fluctuations.
From this heatmap, liquidity is clearly building around the $68,300 and $69,800 price levels. These correspond to areas of concentrated strong buying and selling pressure, which are crucial for Bitcoin's next move. Of course, at the current price level of $69,000, these could easily act as very strong support and resistance zones that could determine Bitcoin's course over the next few days.
Technically, this is the channel Bitcoin is trading in, with the 50-day moving average near $65,000 being used as good support. The RSI above 50 indicates that the bulls have a slight advantage, but the market is not showing any signs of overbuying. The balanced RSI indicates that Bitcoin has room to move in either direction.
This is a very important level because the $68,000 area is a major support. If the price falls to that price area, it could actually bring buying pressure to support the price from there. There is ample liquidity at that level, which suggests that many traders have placed buy orders in anticipation of a bounce from that area.
There is a key resistance area near $69,800. A break above this would signal the start of concentrated buying flow and Bitcoin could reach new highs. The accumulation of liquidity at $69,800 indicates that most of the selling volume is there and this is what Bitcoin needs to overcome to continue its rise.
Still, overall market sentiment towards Bitcoin remains positive, given growing institutional interest and adoption. Either way, the short-term outlook will depend entirely on how Bitcoin performs against these key levels. Either a bounce off the $68,000 support or a break above $69,800 would set the stage for the next big move.
About the Author
Armand Sirignan
