Bitcoin’s recent price surge has caught the attention of analysts as it edges closer to its all-time high.
Renowned analyst Willy Woo suggests that Bitcoin hitting $72,000 could initiate a wave of liquidations, paving the way for a new record.
Bitcoin rose by 3.15% in the past 24 hours to reach $71,124 as of 11:05 AM on June 5, according to CoinMarketCap.
Explore the potential implications of Bitcoin’s latest price movement and its impact on the broader cryptocurrency market.
Bitcoin Faces Key Resistance at $72,000
Bitcoin is currently encountering significant resistance at the $71,500 and $72,000 levels. Data from CoinGlass shows that surpassing $72,000 could result in the liquidation of $800 million worth of short positions across various exchanges. Should Bitcoin climb above the $72,500 mark, it could trigger the clearing of leveraged short positions exceeding $1.2 billion. Presently, Bitcoin is trading 3.4% below its all-time high of $73,740, reached on March 14.
Analysts Weigh in on Post-Halving Accumulation Phase
Popular crypto analyst Rekt Capital has noted that the accumulation phase following Bitcoin’s halving event concluded when Bitcoin surged above $60,000 on May 6. Since that date, Bitcoin’s price has increased by over 12.5%, confirming the end of the post-halving danger zone. This development suggests a bullish outlook as Bitcoin continues to push towards higher price levels.
Bitcoin Breaks Two-Week Downtrend
In a recent X post, Rekt Capital highlighted that Bitcoin broke out of a significant two-week downtrend on June 3. He stated: “Bitcoin has successfully broken its two-week downtrend today. However, we’ve seen upward wicks beyond this downtrend before. A daily close above this level is necessary to confirm the breakout.”
The Path to Parabolic Gains
Despite the positive developments, Rekt Capital emphasizes that Bitcoin needs to turn the $72,000 resistance into support before entering its “parabolic phase” of the bull cycle. This transformation is crucial for sustained upward momentum and setting new all-time highs.
Conclusion
Bitcoin’s recent performance has shown promise as it approaches key resistance levels. The market is watching closely, and a successful breach of the $72,000 resistance could lead to significant liquidations, propelling Bitcoin to new heights. Investors should stay informed and cautious as the cryptocurrency market remains highly volatile. Future price movements will depend on Bitcoin’s ability to maintain its upward trajectory and break through critical levels.