Over the past week, Bitcoin has been on the rise It appears that the bulls have taken control of the pricewhich eventually pushed it above $73,000 again. There has been a slowdown since then, with the bears trying to retest the $70,000 level over the weekend. For now, the bulls are still open, but there is still a possibility that the price will break down again. To this end, Bitcoin price has an important support level that must be held if the bulls are indeed to sustain the uptrend.
Bitcoin’s magic point lies at $70,500
After initial rejection from the highs of the range, Bitcoin price is now moving towards a crucial level. According to the cryptoanalyst Max tradesIt is now moving towards the next major support level that the bulls must hold. This level is located at just $70,500, which is the level Great support since the beginning of the uptrend.
Related reading
It is important to hold this key support level because it will determine whether the uptrend will continue or not. The high range is still above $72,000 at the moment, and this is where the bears are putting up the most resistance. Therefore, the price will need to break the high range to continue going up, or break the key support to resume the downtrend.
Another major thing dragging the price down is the fact that there is still a gap on the CME that has yet to be filled. This CME gap is below $67,000, making it a magnet for bears. Given this, if Bitcoin price ends up breaking the major support at $70,500, it will start to weaken the currency. Bullish structure Which started appearing last week.
A push into the CME gap would mean a break below $67,000, and a push towards $66,000 to reach the bottom. However, even this will not happen Determine that it is the bottom From the downside, there is a possibility of further push down to obtain more liquidity.
Key liquidity levels are below $65,000, which is where whales can head towards to make the most of the move. This means that it is in a state The main support is brokenThis will be just the beginning of the trend. The final step will be a Cascading event It could send her down a level.
Related reading
However, the cryptocurrency analyst explains that the price of Bitcoin is not bearish at the moment. This is because the price stays within the range, and trading above the major support level keeps it here. “An important point to keep in mind is that Bitcoin is still range-bound, and as long as this remains the case, the price will be mostly liquidity-driven, chasing both sides.”
Featured image from Dall.E, chart from TradingView.com
