Bitcoin (BTC) Price Consolidation Prepares the Market for a Potential Breakout as the US Election Nears

Bitcoin has entered a consolidation phase after falling short of breaking its all-time high this week, leaving bulls in anticipation of the next big move.

Bitcoin price analysis: BTC liquidity hovers just above all-time highs

Bitcoin price has entered a consolidation phase after failing to reach a new all-time high, leaving the bulls waiting for the next big move. Currently trading just below its previous peak, BTC's failure to surpass this level has caused a temporary reset in momentum.

According to key data from CryptoQuant, there has been an increase in long BTC liquidations recently, indicating that bullish investors are facing a short-term shakeout. This wave of liquidations forces leveraged positions to unwind, which could clear excess leverage from the market.

Although this situation creates short-term volatility, it can also prepare the ground for a new wave. As liquidity resets, BTC may form a healthier base for a stronger breakout attempt.

Analysts suggest that this period of consolidation could be a central moment for BTC to finally surpass all-time highs and create a new wave of bullishness in the market. As the stage sets for potential volatility, investors are closely watching for signs of renewed momentum that could take Bitcoin into uncharted territory in the coming days.

Bitcoin Liquidity Pending Above ATH

Bitcoin is currently facing a central moment; While liquidity remains just above its all-time high, a pessimistic mood prevails among investors. While critical resistance remains firmly in place, many bears believe that BTC will have difficulty breaking through this critical level anytime soon.

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This increase in long liquidations could signal a broader market shakeout, setting the stage for a significant liquidity sweep. By pushing out bullish retail investors, Bitcoin could be poised for a revival that could push prices beyond previous all-time highs. Investors are keenly aware that this could be a critical turning point as the dynamics of liquidations could create a catalyst for renewed bullish momentum.

However, there is also significant downside risk. If the price continues to fall, it could lead to further liquidations and a pullback to lower demand levels. This scenario will test the resolve of current owners and challenge the overall bullish sentiment of the market.

Next week will be especially critical with the US election approaching and the Federal Reserve's decision on interest rates. These events are likely to significantly impact Bitcoin's price action, and the next few days will be crucial for both bulls and bears. Investors should stay alert and prepare for potential volatility as the market moves past these important developments.

BTC About to Enter Price Discovery

Bitcoin is currently trading at $69,700 after testing supply below its all-time high at $73,794. As the market leader approaches this critical resistance, it is on the verge of a price discovery phase characterized by significant bullish momentum that could lead both BTC and the broader market into a major bull run. However, for this bullish trajectory to materialize, Bitcoin must confirm a decisive breakout from its all-time high.

Currently, BTC is holding strongly above the $69,000 support level, which is critical to maintain bullish momentum. If the price can stay above this level, it will likely set the stage for a challenge against the previous all-time high. Other y

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