LIVEWhy Bitcoin could hit $60,000 before a rally to $72,000
(note: the post contains data by AMBCrypto)
Bitcoin’s (BTC) jump to $67,740 does not mean that the price would no longer nosedive. In fact, there is a chance that BTC could drop to $60,000.
According to data from Coinglass, there was a big cluster of liquidity from $67,626 to $68,000, indicating that Bitcoin could approach the levels one more time.
On the downside, there was a major level at $60,160. As such, resistance between $67,000 and $68,000 could force BTC to drop to $60,000 which could later act as support.
However, the most concentrated area of liquidity was $72,000, meaning that the next uptrend could push Bitcoin to this point. Establishing this bias was the Realized Price.
Realized Price measures the average price divided by Bitcoin’s supply. This helps to understand the economic state of the coin. Like the liquidation heatmap, this metric can act as on-chain support or resistance.
If the Realized Price hits or crosses Bitcoin’s value, it means that the coin has fallen into a bear phase. For example, the metric flipped BTC in November 2022, confirming a crash in the price.
As of this writing, the Realized Price was $29,142— two times less than the press time value. With this position, one can infer that BTC has not hit the top of this cycle.
In the meantime, BTC could undergo a consolidation phase first. After that, more liquidity could flow out of the coin which could propel the downturn before the upswing.
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