- Short-term Bitcoin whales are underwater, which likely presented an ideal buying opportunity
- The statistics looked similar to those before the last big bull run
Bitcoin [BTC] fell below the key demand zone at $60,000.
This region had kept the sellers at bay, but eventually gave in. Cryptography technical analyst CrypNuevo highlighted that we could potentially see a recovery to $61,000 after the FOMC message on X (formerly Twitter).
Should traders expect the former $60k support to be recovered? Otherwise, should they aim to go short on a retest? Here’s what market participants can consider before making their next move.
The current breakdown involves high trading volume
Source: BTC/USDT on TradingView
The key levels are $59.4k and $60.7k in the near term. A cluster of liquidity is likely present around these levels, marking these areas as critical areas where bearish continuation could occur.
Such a continuation is expected as the OBV has fallen below the two-week support, underscoring the dominance of selling pressure.
The liquidation levels showed that the cumulative delta of the liq levels was hugely negative. Therefore, we can expect an upward move in the short term to accumulate liquidity and wipe out the imbalance.
The $60.5k and $63.8k levels had the highest cluster of liquidation levels. Therefore, a move towards these levels is expected before a reversal to the south occurs.
Of gold and death crosses
In a CryptoQuant Insights post, user CoinLupin pointed out an interesting development.
Looking at the realized UTXO age ranges, the beginning of major bull runs came when the realized price of 1-3 month and 2-3 year bands had a smoother process.
This happened in 2020 from January to September, and prices tend to consolidate near the realized prices of these age categories.
Read Bitcoin’s [BTC] Price forecast 2024-25
In the current cycle there were not as many gold and death crosses between these two age groups.
However, the recent pullback could be followed by bigger losses as savvy market participants buy from impatient BTC sellers. This could be followed by a real bull run, the analyst pointed out.