Recently, the cryptocurrency market experienced a significant correction, witnessing a sudden decline in the global crypto market cap. This downturn coincided with data from the Bitcoin Liquidation Heatmap, signaling the potential for a substantial $2.7 billion Bitcoin short liquidation once BTC reaches the critical threshold of $67,000. As of today, the Price of Bitcoin (BTC) stands at $61,601.75, with the cryptocurrency’s 24-hour trading volume recorded at $21.6 billion. Over the past 24 hours, Bitcoin has declined by -1.62%.
Analysis of Bitcoin’s Price Trends and Impending Liquidation
Despite the looming $2.7 billion Bitcoin short liquidation threat at $67,000, the price of BTC has been confined within a large descending channel pattern, characterized by lower highs and lows. While some interpret this price action as indicative of a bear market reversal and downtrend, the overall momentum appears less bearish. The $60K support zone has proven resilient on multiple occasions, with market sentiment seemingly targeting the channel’s higher boundary.
However, breaking through the $63,000 barrier poses the next challenge for a potential rally towards the all-time high. Conversely, breaching $60.5K could precipitate a descent towards the $52,000 – $55,000 support zone, potentially leading to a market crash.
The Relative Strength Index (RSI) has surpassed the 50% mark, signaling a return to bullish momentum. Consequently, breaking the $63,500 level could pave the way for a rally towards and potentially beyond the midline of the channel, setting the stage for new all-time highs.
The volatile nature of the Coinbase premium gap, particularly its downward trend, underscores significant selling pressure from US investors, including wealthy individuals and institutions, which could impede bullish continuation.
Also Read: Why Cardano Price Could Jump 1500% Soon: Analysts Take On ADA
Current Bitcoin Market Outlook and Price Predictions
Bitcoin has seen three consecutive daily green candles following the last red candle on May 10, with a 2.1% increase to $62,634, stabilizing the uptrend. However, the cryptocurrency is poised to remain in a precarious position until support at the 20-day Exponential Moving Average (EMA) and the 50-day EMA are reclaimed. Despite a slightly bullish outlook from the Moving Average Convergence Divergence (MACD) indicator, with a current position at -864 coupled with short green histograms, the potential for sell-side pressure remains a concern.
Traders should exercise caution, particularly amidst various macroeconomic activities. A drop below $60,000 remains plausible, with a correction potentially extending to $56,500 or even $50,000. Conversely, positive Consumer Price Index (CPI) data could spur investor confidence, leading to a Bitcoin price surge towards $70,000. Key milestones likely to fuel FOMO include surpassing resistance areas at $65,000 and $67,500.
Also Read: Ethereum ETF Approval Hangs In Balance As SEC Issues Major Notice
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
