Currently, Bitcoin trades at $67,500, just a shade under this critical level. A chart and heatmap have shown this will be a crucial area for long traders, in the zone of $67,000-$69,000. If BTC makes its way in this direction to step into the critical zone, more liquidations will be raining in, pushing aggressively on the asset’s price. The CoinGlass heatmap clearly shows that the most saturation has occurred around liquidation levels, where, in turn, enhanced volatility is likely.
At least in the obvious short-term time frame, this latest round of price action leaves BTC consolidating above this level. Market sentiment at the moment is mixed and overwhelmed by a host of factors, but most notably by the ongoing craze surrounding the prospect of Ether ETFs in very short periods of time, which sees both bullish and bearish tendencies back on the table and another layer of complexity added to the short-term price movement for Bitcoin.
What this effectively will do — if the quoted price of Bitcoin breaks $69,000 with strength — is invalidate the bearish scenario and lean toward really feeding big price surges. Such a breakout might send BTC into new highs, as this might bring in new bids that will further squeeze shorts. The real key is strong momentum to sustain volume, which will provide the pushed fuel wanted for a critical vertical move.
The failure of BTC to hold above the $67,000 support is likely to see it drop further on long liquidation, which can even take it to the immediate next level of support around $64,000. Conditions are bound to be quite volatile in such situations as traders react sharply to price moves.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
