Bitcoin (BTC) Price Attempts to Stabilize Above $65K, But Will It Hold?

BTC seems to be supported by daily and weekly low zones, while other on-chain data indicates a significant decrease in Fear of Missing Out (FOMO) and a recent increase in selling liquidity. This suggests a potential move towards a bottom.

The price of Bitcoin (BTC) is trying to hold steady above the $65,000 level on Wednesday. BTC seems to be supported by daily and weekly lower zones, while other on-chain data shows a significant decrease in Fear of Missing Out (FOMO) and a recent increase in selling liquidity. This suggests a potential move towards a bottom.

Meanwhile, liquidation data from Coinglass provides a glimpse into the long and short positions that have been liquidated for traders, who are forced to close their trades as the asset’s price moves against them. In the past 24 hours, a total of $72.60 million in Bitcoin has been liquidated, with $49.62 million coming from long positions.

This indicates a significant increase in selling liquidity and selling momentum, leading to the closure of most high-leverage long positions and the activation of a series of pending buy orders, allowing for entry into a large position with minimal reversal. I believe this could help Bitcoin form a new price bottom.

Despite the selling pressure, Bitcoin’s price has fallen by 5.1% this week, forming a clear bearish candle on the weekly chart—a strong bearish engulfing candle starting at the upper boundary of a long-term rising wedge pattern extending from its all-time high of $73,845.

According to the daily chart, there could be more selling this week. Usually, when Bitcoin’s market dominance decreases, it creates opportunities for other cryptocurrencies to gain traction and potentially out-perform the major crypto asset. Bitcoin’s consolidation within the current price range over the past few weeks has resulted in a decrease in its dominance.

However, once the price breaks out of this range, other cryptocurrencies may see a rise in performance. The expected rise in the cryptocurrency market may not occur in the short term.

As Bitcoin’s dominance continues to struggle to surpass the 58-60% level, I believe current market projections indicate a potential short to medium-term decline. This suggests the market may experience further drops before the major recovery that has been anticipated since the halving event.

From a fundamental perspective, the market shows a decrease in demand for Bitcoin, driving its price down significantly. The Parabolic SAR indicator readings on the daily chart confirm a continuous price drop. This suggests a potential decline towards support between $60,000 and $55,000 before the major recovery or rise, which might take years to occur. Hence, long-term investments in Bitcoin are the most prudent strategy.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-price-attempts-stabilize-k-hold.html

The above is the detailed content of Bitcoin (BTC) Price Attempts to Stabilize Above $65K, But Will It Hold?. For more information, please follow other related articles on the PHP Chinese website!