Bitcoin recently entered a key liquidity position near the $73,000 level, briefly tapping overhead liquidity before suffering a sharp downward reaction. With the structure still holding and buyers jumping in during dips, attention now shifts to whether this positioning phase could set the stage for stronger momentum towards the $80,000 region.
Higher liquidity move before sharp rejection near $74,000
According to Following Columbus’s latest MMT Heatmap update, Bitcoin experienced a significant increase in the upper liquidity pocket during the overnight session. The price climbed aggressively to the $73,000 mark, testing the strength of the overhead offering. However, this momentum suffered a sharp corrective response as it approached a substantial liquidity cluster around $74,000.
This particular price action is characterized by a market seeking liquidity without establishing immediate acceptance of the value. This is a sweep, followed by investors building positions; a standard market mechanism where high interest rate zones are cleared before the market has gathered the necessary structure to allow a more permanent increase.
Currently, Bitcoin is still in a rotation phase as it attempts to solidify a gain above its previous channel resistance. This transition period is critical for turning old resistance into support and providing the technical foundation needed for the next phase of the bull cycle.
The broader outlook remains cautiously optimistic, provided buyer demand is resilient and does not fade quickly. As long as bids continue to rise aggressively on every small dip, the underlying market structure remains bullish.
Bitcoin tests historic weekly support-resistance zone
Bitcoin’s weekly chart shows that the price is currently negotiating one of its strongest support and resistance zones, a level dating back to the week of March 11, 2024. Market action around such historically important areas often determines the next big price move, as both buyers and sellers tend to aggressively defend their positions.
Crypto analyst Christopher Inks notes that the momentum indicators still leave plenty of room for further upside potential. Both the weekly RSI and the stochastic RSI remain well away from overheated territory, suggesting that Bitcoin could still extend its gains and potentially push towards the $80,000 region if bullish momentum continues to build.
Christopher Inks has also emphasized throughout the year that a strong, impulsive weekly candle breaking and closing above the annual pivot at $96,071.25 would be a major signal for the market. Such a move would confirm that the cycle low has already been reached and could open the way for Bitcoin to move towards a new all-time high.