Bitcoin (BTC) tapped $70,000 during Wednesday’s New York session as bulls targeted selling liquidity.
Important Points:
BTC price support should hold above the key trendline at $68,000 to continue the rebound.
$80,000 is a key level to watch for as the next big liquidation cluster above.
The arrival of spot bitcoin ETFs attracted half a billion dollars in inflows on Wednesday.
Bitcoin should close the week above $68,000.
Data from TradingView showed the BTC/USD pair at $68,480 on Bitstamp. It is just above the 200-week exponential moving average (EMA), which is currently at $68,338.
Related: Bitcoin Tops $69.5K After Stocks Recover, Strong Earnings Data Increases Risk Appetite
Analyst Rekt Capital sees Bitcoin facing resistance from this trendline, saying that the latest rally could turn into “new resistance after the breakdown of the EMA” based on historical price action.
“The moment of truth is coming for Bitcoin,” added Rekt Capital.
“Bitcoin will need a weekly close above the EMA and flip into new support to go against the grain of history.”
Zooming in, fellow analyst Jelle said price needs to break the 50 EMA (at $68,000) into support on the four-hour chart to confirm a recovery.
As Cointelegraph reported, the BTC/USD pair could reach $74,508, where sellers are likely to step in, if the 20-day EMA, currently at $69,220, is broken by the bulls.
Will Liquidation Take BTC Price To $80,000?
Many traders are anticipating a possible liquidity grab where a cluster of ask orders has been placed above $72,000.
The latest data from monitoring resource CoinGlass shows that the BTC price is tapping liquidity around $70,000, with the bulk of interest still above the spot price.
Around $2 billion of asking orders sit between $72,450 and $75,000.
If the $75,000 level is broken, it could trigger a liquidity squeeze, which could force short sellers to close positions and push prices toward $80,000, the next major liquidity cluster.
Analyst AlphaBTC said in his latest post on X that Bitcoin’s liquidity hunt has only just begun:
“Unless a catalyst is about to fall, I’m expecting this high level to hold over the next few weeks.”
Arrival of spot bitcoin ETF supports BTC’s upside.
Institutional demand is showing signs of a rebound, with U.S.-based spot bitcoin ETFs recording inflows for two straight days, according to data from Foreside Investors.
Investors poured a combined $765 million into these investment products on Tuesday and Wednesday, with $507 million flowing into the funds on Wednesday, the most since Feb. 2.
“ETF arrivals and short liquidations are doing the heavy lifting,” X user Raster said in a recent post, adding:
“This is not retail FOMO, this is institutional accumulation with a technical breakout.”
This increased demand-side pressure could push BTC prices higher, especially if combined with increased adoption and accumulation of the wheel.
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