#Bitcoin recently retraced to a key support level, drawing renewed attention from investors. The cryptocurrency’s price pulled back to the significant support level of $68,000. Despite this retracement, demand for Bitcoin spot ETFs remains robust, with 32 million in inflows recorded yesterday. This suggests that investors continue to see long-term potential.
Technical Analysis: The Significance of the $68,000 Level
As discussed in my previous video, there was a strong likelihood of a pullback to the $68,000 level. After breaking critical resistance levels, a retest movement is common. Such retracements help cool off market sentiment by reducing long pressure, making an upward trend healthier and more sustainable.
At the current stage, maintaining support at $68,000 is crucial. As long as this level holds, Bitcoin’s positive outlook should remain intact. Ideally, a close above $70,000 before the weekly candle closes would further strengthen this outlook. Such a close would confirm a breakout of the weekly downtrend, setting the stage for a potentially strong upward move. #CryptoAMA
Market Data and Whale Activity
Looking at short-term market data, there haven’t been significant changes. Whale activity is showing a positive signal, currently around +12. A reading above 10 suggests that large investors remain active and are positive about the market’s outlook. #16thBTCWhitePaperAnniv
On the other hand, spot markets are relatively quiet. Notably, Coinbase has not resumed buying since its recent sales, suggesting that the spot market may remain calm over the weekend.
Funding rates are at normal levels, indicating that there isn’t excessive long pressure, and the market is generally balanced. Examining liquidation levels, we see that long liquidations are concentrated around $65,000, while short liquidations are around $74,000. These levels hint at possible areas of price compression and potential breakout points. #Binance
Weekly Close Expectations
A weekly close above $70,000 is critical in terms of breaking the downtrend and signaling a clearer upward move. If support holds and Bitcoin can consolidate or climb slightly, the long-term outlook will remain favorable.
In summary, holding support at $68,000 and reaching $70,000 before the weekly close will create positive market sentiment. I’ll continue to update on any significant changes in the data.
Wishing everyone a profitable week ahead!