Crypto analyst LP has stated that Bitcoin has not seen any truth yet soil formation still, despite the price appearing to form strong support at current levels. This comes as BTC seeks to recover the psychological $70,000 amid ceasefire talks between the US and Iran.
Bitcoin is still at risk because the price has not yet reached a bottom
In one X messageLP stated that Bitcoin has not yet shown any real bottom formation and suggested that the leading crypto is not yet close to a bottom. He alluded to the foregoing bear cyclesnoting that bottoms formed after multiple lows, forcing capitulation before BTC made a turnaround.
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However, the analyst noted that this time was different, with Bitcoin consistently hitting the highs, making it difficult to take short positions, while leaving the lows visible and building liquidity underneath. He stated that it is likely a matter of time before price targets lower the fuses, which could then lead to a good bottoming process ahead of the stock price. next bull cycle.
LP stated that when that collapse eventually occurs, market participants should keep a close eye on the price action. He noted that a true bottom is likely to form when the price begins to repeatedly hit lows, making it psychologically difficult to enter long positions. It is worth noting that Bitcoin has been recovering since the February 6 low and has not yet made a new low.
Bitcoin’s recovery has reached the halfway point the war between the US and Iranwith the leading crypto remaining strongly above key support levels despite escalating tensions. BTC is now trying to regain the psychological level of $70,000 reports that the US and Iran are working on a 45-day ceasefire to end the war.
A drop to $63,000 is still in sight
In another X messageLP stated that it is only a matter of time before the $63,000 level is reached. He noticed that price remains range-related and that both sides will continue to be cut into pieces, but the goal remains clear. Therefore, the analyst advised that the best approach is to enter at the ends of the range. “Even with a bearish HTF bias, 63-62K stands out as a solid area for hedge longs versus the 73K short,” he added.
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Commenting on the lower time frame, LP noted that short clusters with high leverage have cleared, while larger clusters remain overhead and extend to the $75,000 level. Meanwhile, he stated that the long liquidation clusters are building around $66,000, increasing liquidity below. Overall, the analyst revealed that liquidity remains more concentrated to the upside, but as long as the price remains within a certain range, both sides are likely to be cleared.
At the time of writing, the Bitcoin price is trading around $69,100, up over 3% in the past 24 hours. facts from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com