- Bitcoin is down almost 3% after climbing to a local high of $69.4k.
- The Bitcoin dominance and liquidity charts contain clues about the next price movement.
Bitcoin [BTC] reached the $69k resistance zone. An earlier report highlighted that the liquidity pool at this level was likely to pick up prices before a potential bearish reversal occurred.
In the last 24 trading hours, BTC reached $69.4k and fell 2.7% to trade at $67.5k at the time of writing. The metrics were short-term bearish earlier this week. Monday’s trading session could set the trend for the following week.
Potential scenarios for Bitcoin this week
AMBCrypto analyzed the 7-day lookback period on the liquidation heatmap. A cluster of liquidation levels was present around the $70k level and at the $66.4k level.
In the last few hours, the price reversal from the $69,000 zone has added to the liquidity pool of around $70,000.
This makes it an interesting price target for Bitcoin on Monday. A move towards the $70,000 area to clear liquidity and create hope among the bulls before a reversal could occur.
This price increase could precede a dip to the $66.4k level. A move past either level would likely signal whether this week would be bullish or bearish.
Clues from the Dominance Chart
The Bitcoin Dominance chart showed a break above the range highs. This meant that Bitcoin outperformed the major altcoins. In the event of a market-wide downturn, altcoins would suffer disproportionately.
Traders can use this information to decide which assets to trade, based on Monday’s guidance.
The Tether Dominance chart is inversely related to the price movements in the crypto market. When USDT.D rises, it is a sign that investors are switching to stablecoins and selling their crypto.
Read Bitcoin’s [BTC] Price forecast 2024-25
Based on the Tether Dominance trend, there could be a downward move this week. Traders can keep a close eye on Monday’s performance and structure their directional preference accordingly.
Over the past month, the USDT.D move on Monday has generally set the tone for the week ahead.