- BTC liquidation levels and the pwEQ could be critical to potential rebounds.
- The 50 and 200 day moving averages form a Golden Cross.
Bitcoin [BTC]the most dominant digital asset, continues to attract attention and its price attracts significant analysis.
With the current market momentum, traders are actively looking for opportunities, especially in zones with a high risk-reward ratio.
Recently, Bitcoin rose at the weekly open, creating two large long liquidation levels due to high debt levels, which perfectly matched last week’s equilibrium (pwEQ).
The pump encountered resistance because the bid-ask ratio tilted sharply to the ask side. This led to a retracement, causing BTC to return to critical levels, making these liquidation points and PwEQ key areas for potential price gains.
Source: Hyblock Capital
The bid-ask ratio now shows a shift towards demand, with more bids appearing within 2% of the current price.
This indicates that entry levels around $62,000 to $63,000 could offer high returns if Bitcoin continues its upward momentum.
Looking further at the price action of BTC/USD, the $62,000 to $63,000 zone emerges as a crucial level.
The 50-day and 200-day MAs are approaching a golden cross formation, a bullish signal indicating potential upside momentum.
Source: TradingView
This pattern, combined with liquidation levels and PwEQ alignment, strengthens the case for further gains.
The last time a similar golden cross occurred was last year, which preceded a significant bullish run, indicating that a breakout could be near if the bulls take control.
BTC supply and momentum
Furthermore, analyzing the short-term behavior of holders shows that weaker hands have left the market. When Bitcoin’s price falls, short-term holders often panic sell, typically locking in losses.
This is reflected in an increase in the purple bars on the chart, which mark sell-offs during recessions. As weak hands disappear, Bitcoin shifts to stronger hands, potentially stabilizing the market.
STH supply has fallen significantly, especially after major sell-offs, indicating that selling pressure has subsided.
Source: CryptoQuant
This reduction in supply could create favorable conditions for accumulation, further supporting the importance of the $62K-$63K zone for high-risk return opportunities.
Finally, the Momentum Short-Term Cap indicator, which measures the difference between Bitcoin’s market capitalization and realized capitalization over short-term periods, is showing signs of recovery, albeit slowly.
This ratio is a reliable indicator of market peaks for short-term holders and highlights potential price thresholds.
While the current ratio indicates that the market is heating up, macroeconomic factors and the slow recovery of momentum suggest that Bitcoin’s next big move could take some time.
Source: CryptoQuant
However, once these conditions improve, momentum could quickly return, potentially pushing Bitcoin’s price higher and bringing the current cycle to an end.
Read Bitcoin’s [BTC] Price forecast 2024–2025
Bitcoin’s current price levels offer significant potential, especially as strong technical indicators such as the golden cross and declining STH supply point to a bullish outlook.
With momentum building, BTC could see higher prices in the coming months.