Bitcoin is currently facing a tough time trying to stay above the critical $70,000 mark. Recent attempts to close above this level have fallen short, leading to significant liquidations for long traders.
In the last 24 hours alone, long liquidations reached $50 million, coinciding with a 2% drop in price. This is the largest loss for long traders in two weeks. It shows just how hard it is to keep support around $70,000. The recent pullback has affected investor sentiment, making some traders reconsider the potential for further declines.
This wave of liquidations highlights the volatility in Bitcoin’s price. Even small drops can trigger big reactions in the market. However, many long traders are holding their positions. This suggests they believe Bitcoin can overcome these challenges and continue its upward trend. It’s a sign that confidence in the market remains strong, even with these short-term setbacks.
Looking at the bigger picture, Bitcoin’s momentum appears solid. Open Interest (OI) has hit an all-time high of $32.9 billion. This peak indicates a high level of engagement among traders. More capital is flowing into Bitcoin, despite the recent liquidations. This suggests that traders are not deterred by the volatility. Both institutional and retail investors are backing Bitcoin with significant capital, showing their belief in its long-term potential.
Currently, Bitcoin is trading at $67,007, which is about 10% below its all-time high of $73,800. At this level, BTC is nearing a potential breakout from a descending wedge pattern. This technical setup often leads to significant price movements. A breakout could set Bitcoin up for a strong rally toward the $73,000 level.
The wedge pattern indicates a possible 27% rally, targeting a price of $88,185 for Bitcoin. While this goal is ambitious, the immediate focus is on BTC breaking its all-time high of $73,800 to solidify its upward momentum.
However, Bitcoin is still struggling to achieve a clear breakout. This makes $67,000 a critical support level. If it fails to hold this support, we could see a drop to $65,000. This could delay the anticipated breakout and complicate the bullish outlook.