Bitcoin is trying to consolidate below $29,500 resistance target after bullish breakout that send BTC/USD price soaring to six-week highs. Even as the cryptocurrency went through a minor correction, analysts turned their attention to key support retests and what they mean for BTC price in the future.
Key Liquidation Levels and Potential Price Swings
The biggest concentration of liquidation leverage for Bitcoin maxes out at a price of about $93,600. The vast majority of leveraged shorts are located in the range of $93,500 to $94,500. Conversely, leveraged longs are concentrated around $91,400. Traders have been watching that psychological key level around $93,500. Their central argument is that this target is just what the doctor ordered for Bitcoin to cement its newfound breakout.
Some traders are considering the chance for a larger pullback. This new dynamic might just re-balance the market back down below the $90,000 threshold. Rekt Capital warns that Bitcoin has a chance to retest support at $87,000. They highlight the fact that today’s price action is very similar to price action during the middle of the 2021 bull market.
Part of Bitcoin continuing to repeat mid-2021 price tendencies relative to the Bull Market EMAs would be a dip into the $87000 (green EMA) level for a post-breakout retest, if at all needed. - Rekt Capital
Market Sentiment and Whale Activity
Bitcoin exchange outflows are showing similar patterns to early 2023, signaling another possible accumulation phase. Additional reports indicate that whales are aggressively purchasing Bitcoin as retail investors “panic,” further skewing market dynamics in the process.
Fairly normal to have a slight correction here on Bitcoin as it's just had a massive breakout. - Michaël van de Poppe
Buyers likely going to step in and then we'll be continuing our path towards a new ATH. - Michaël van de Poppe
External Factors and Future Outlook
Even with large dislocations from recent news, Bitcoin has continued to act stably, leaving all the volatility to equities. Such resilience indicates robust underlying demand for Bitcoin, as it shakes off all external pressures.
An unnamed analyst suggests potential bullish announcements on the horizon.
As we have seen multiple times this year, it almost feels like someone is front-running something right now. We expect to see some sort of bullish announcement soon.
