- BTC has retraced with crucial resistance at $70,000 and minimal support beneath the current range.
- A breakout above $70,000 could trigger significant buy orders and increased liquidity.
- Such a situation often leads to a volatile flow of trading activity until a strongly defined trend appears on the market.
Bitcoin is still firmly residing in a consolidation phase and liquidity can still be considered being quite a distance away from current levels. For instance from early October the cryptocurrency has been in the middle of a channel and has not exhibited strong upward or downward movement. Despite most market price ranges being flat, all traders are on the lookout for breakout points, especially around the $70,000 area on the upper side.
Upside Potential at $70K With Limited Support Below
For traders and investors, the $70,000 is viewed as a level of resistance for Bitcoin. If Bitcoin should breach this level, it will likely attract a high number of buy orders, thus creating more liquidity. The $70K mark is a psychological and technical level that has been beyond the range since the prices at Bitcoin’s all-time high figures.
#Bitcoin Pretty much in the middle of nowhere here with most liquidity sitting far away.
Towards the upside it’s clear that the $70K+ level is the one to watch out for.
Below, there’s some small clusters but not much until much lower.
The longer we chop, the more gets created. pic.twitter.com/As4Yvj61Na
— Daan Crypto Trades (@DaanCrypto) October 3, 2024
Market participants are anxiously waiting for a meaningful rally which is needed to push the price of Bitcoin to this level.On the downside, there seems to be a rather limited number of clusters of liquidity until much lower Bitcoin price levels are reached. There is only limited brightness present in other regions of the market and no noticeable buying presence until far beneath the established current trading zone.
This absence of strong support could increase the probabilities that trigger a sharp drop if Bitcoin fails to hold out price levels. While there is sufficient liquidity flowing the prices might get more volatile meaning that price swings might be tumultuous.
Unsteady Price Movement Up Front
The longer it extends in this range the more probable that potential liquidity clusters will appear possibly in smaller time frames. In conditions when there are long periods of price stabilization, new zones of interest in the offer are created by buyers as well as sellers. Yet if there is no further push in either direction the market could remain volatile, Exhibiting brief upward movements and reversals in the other direction.
Indeed in the future few weeks it’s expected that investors shall continue to regard aspects such as the policies in relation to the Federal Reserve Board in addition to geopolitical issues that are set to greatly influence the next major movement concerning Bitcoin.
