Traders unbothered by Bitcoin’s sub-$65K levels, say BTC price remains ‘high and steady’
2024.06.18 15:38
Bitcoin’s (BTC) price continued its correction on June 18, dropping 1.41% and 6.5% over the last 24 hours and seven days, respectively.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) dropped to a one-month low of $64,237 after losing the key support provided by the psychological $65,000 level.
BTC/USD daily chart. Source: TradingView
Similarly, the total market capitalization has dropped by 2% over the last 24 hours to rest at $2.33 trillion at the time of publication. The 60% leap in the total trading volume is testimony to the sell-side intensity in the crypto market.
Bitcoin’s drop below $65,000 has led to massive liquidations across the crypto market.
Data from Coinglass shows that over the last 24 hours, $61 million worth of long Bitcoin positions have been liquidated against $24 million worth of short liquidations.
Approximately $372 million of leveraged long crypto positions were liquidated in the 24 hours against $61.8 million short positions.
BTC liquidations across all crypto exchanges. Source: Coinglass
Despite this poor momentum across the entire crypto sector led by Bitcoin, analysts are still optimistic about BTC’s recovery in the next few weeks.
“While altcoins have faced a significant long squeeze, BTC leverage remains high and steady,” K33 Research analysts wrote in a report published on June 18.
The analysts’ sentiments appear to have been informed by Bitcoin’s “mild and choppy” price action as it consolidates in an ascending wedge, as observed by independent analyst Jelle.
Jelle shared the following chart in a June 18 post on X, showing the BTC price coiling up in an ascending wedge. According to the analyst, the latest drop has seen the price of the pioneer cryptocurrency reach an “area of interest” – the wedge’s ascending trendline.
“Tapping the 100-day EMA and lower end of the ascending triangle. Bounce here, and my eyes are on $72,000.”
BTC/USD daily chart. Source: Jelle
Above that, the analyst sets a six-figure target for Bitcoin’s price at $100,000.
Similar ambitious targets were set by fellow analyst Moustache, who explained that the BTC price was forming an inverse head-and-shoulders pattern during the daily timeframe, as shown in the figure below.
If confirmed, the price could rise with the pattern’s target of $87,500.
Source: Moustache
Rekt Capital said that “Bitcoin has been in a constant downtrend” throughout June, adding that the price needs to break out of the downtrend to “initiate a price reversal.”
Related: ‘Buy the dip?’ Bitcoin price drops to new 1-month lows of $64K
Meanwhile, pseudonymous analyst Yoddha said that the price of the pioneer cryptocurrency displayed a similar setup to that witnessed during the 2015-2017 cycle.
According to the following charts shared on X, the analyst explained that the currency correction is just a healthy pull-back setting up BTC from a massive breakout on the upside, as it happened in 2017.
“A similar pullback happened around the 2nd BTC halving. And next, we saw a huge bull rally in 2017.”
BTC price action 2023 and 2017. Source: Yoddha
Daan Crypto Trades noticed a high “liquidity level at $65K and $66.3K,” which he explained could “act as a magnet when price trades close to it.”
CoinGlass data indicates that $64,100 is a significant area of bid liquidity just below the spot price, with about $47 million in buy orders.
Bitcoin liquidation heatmap. Source: CoinGlass
This area could provide the demand pressure required to pull BTC out of the extended downtrend.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
