Bitcoin (BTC) is continuing its decline as the bulls were not able to sustain the price above the $70,000 mark. The latest move upwards halted at $69,300 before moving downwards towards $66,000.
As of writing, Bitcoin is currently trading at $65,614 after falling by 1.42% in the last 24 hours. The trading volume has also declined by 1.26% to $39.55 billion. Over the last week, the token has fallen by 22.23%, according to CoinMarketCap data.
Source: CoinMarketCap
Bitcoin Range-Bound With Fading Strength
Analyst Crypto Woodyz highlighted that Bitcoin still moves inside a clear range. The token has resistance at the $71,200-$72,000 level and support at the $65,800 level. However, the range indicates that there is little conviction in the market.
The token’s price fell below the support level but has since rebounded above the $66,000 level after the entrance of buyers at the lower level. According to the analyst, the momentum remains weak. He also said the market remains choppy and there is no strong trend at the moment.
Woodyz noted that as long as $65,800 holds, Bitcoin may attempt to rise to $70,500. However, the breakout is not confirmed to set the next major direction. Therefore, the market remains in the sideways pattern until then.
Source: X
Also Read: Bitcoin (BTC) Holds Firm Amid Global Escalation, Defends Weekly Lows
BTC Compression Signals Major Move
Additionally, another analyst, Crypto Patel, mentioned the market from the liquidity and order flow perspective. Bitcoin has swept through $62,500 before returning to $68,000.
This reaction is due to the absorption of institutions in the key area of demand. Therefore, the price is currently caught in the middle of two unmitigated order blocks.
The next breakout may be violent, according to analysts, due to the compression in the market. He laid out a bullish scenario in which $60,000 acts as a higher-timeframe low.
This setup supports expansion of the price to $80,000. This case is also likely to result in the filling of the $88,000 to $90,000 liquidity zone.
Source: X
Patel also noted a bearish scenario. He explained that if the level of $60,000 does not work, it may lead to a displacement. This suggests a breakdown in the market structure, creating a discount zone below $50,000. He emphasized the importance of paying close attention to the reactions at this major support level.
However, key levels dictate the short-term outlook. Demand is concentrated in the $60,000-$62,500 zone. Supply pressure is felt at the $80,000 level. Liquidity targets lie in the $88,000-$90,000 zone. The markets await a strong move as volatility builds around these zones.
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