Bitcoin Reaches $70,000 Before Dropping! Analysis from July 30, 2024
As Bitcoin hit $70,000, the cryptocurrency faced selling pressure, slightly lowering its price. Let’s analyze together the future prospects of Bitcoin’s price.
Bitcoin (BTC) Price Situation
After rebounding and reintegrating $60,000, Bitcoin’s price continued to rise, breaking through $63,900. From a technical perspective, this validated the idea of a short-term structure change. Bitcoin then continued its rise, albeit with difficulty, and eventually reached $70,000 on the afternoon of July 29. Unfortunately, it seems that this level triggered selling interest, causing the cryptocurrency to drop and mark a low point at $66,500.
At the time of writing, the Bitcoin price is trading around $67,100. Thus, it seems that BTC has sparked some buying interest. Nevertheless, it still appears weak. As a result, the support area identified around $63,500 and $62,500 can be noted. If the decline continues, a rebound will be desired at this level. Regarding Bitcoin’s medium-long term trend, it remains bullish, although the cryptocurrency has been in a range phase for several months. This is supported by the fact that Bitcoin is trading above its 50 and 200-day moving averages. Unsurprisingly, Bitcoin’s price dynamics have calmed. This is reflected by the BTC price itself as well as by oscillators. All of these elements leave room for uncertainty regarding the continuation of the recently initiated upward movement.
The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There, you will find Lives, educational content, and support around financial markets in a professional and friendly atmosphere.
Focus on Derivatives (BTCUSDT)
The open interest of Bitcoin perpetual contracts seems to be increasing more significantly than its underlying, as shown by its price. This reflects significant interest from speculators. Given the cryptocurrency’s rise and continuously positive funding rates, it appears that the majority of traders are long-oriented. Regarding liquidations, there has been a recent capitulation of the last buyers with pronounced long position liquidations.
The liquidation heatmap of recent months indicates that BTC/USDT has contacted the liquidation zone around $70,000. The cryptocurrency reacted negatively, thus sparking selling interest at this level. Currently, Bitcoin’s price is heading towards the liquidation zone around $63,400 – $62,100. Lower down, the subtle zones identified around $59,000 and $56,200 can be noted. However, the most notable liquidation zone is above the current price, between $72,000 and $73,000. If the market approaches these levels, we could witness a massive triggering of orders, potentially increasing the cryptocurrency’s volatility. These zones, therefore, represent major points of interest for investors.
Hypotheses for Bitcoin (BTC) Price
- If Bitcoin’s price holds above $62,500, a bullish continuation could be anticipated, breaking through $70,000. The next resistance to consider would then be around $71,700. If the upward movement continues, this could suggest reaching BTC’s ATH at $73,750. At this point, it would represent an increase of more than 10%.
- If Bitcoin’s price fails to maintain above $62,500, a return around $60,300 could be considered. The next support to consider, if the bearish movement continues, would be just below $58,000. Lower down, the $56,500 support can be noted. At this point, it would represent a drop of around 15%.
Conclusion
After showing notable growth, Bitcoin is now facing selling pressure. Although the medium-long term trend remains bullish and optimism prevails, the market seems hesitant, reflecting a calmer and more cautious dynamic. Therefore, it will be crucial to closely observe the price’s reaction to different key levels to confirm or invalidate current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also quickly evolve based on other more fundamental factors.
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Family Trading is a community of proprietary traders active since 2017, offering live sessions, educational content, and support around financial markets including cryptocurrencies, with Elie FT, an investor and passionate trader in the crypto market, by its side.
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