Bitcoin eyes $80K as traders see short-term BTC price rebound.
Bitcoin (BTC) charged above $69,000 on Friday as US CPI data showed cool inflation, prompting traders to hope for a short-term BTC price recovery.
Main Receptors:
Traders will support the BTC price relief rally in the short term, but the bulls should first take out the resistance from $68,000 to $70,000.
If the bulls confirm the $65,000 level as support, Bitcoin market analysis predicts a short squeeze to $80,000.
The price of Bitcoin should take out resistance at $68,000
Bitcoin tried to break out on Thursday but bounced back at the $68K level, analyst Daan CryptoTrades said in a Friday post on X.
“If BTC ever wants to see another leg, this is the place to look.”
The accompanying chart showed the BTC/USD pair consolidating in a falling wedge in the one-hour period.
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The pattern anticipates a short-term rally to $72,000 when the price breaks from the wedge's upper trendline at $68,000.
If it doesn't hold the $65,000-$66,000 support, “the chances of a deep correction increase,” said fellow analyst Ted Truss.
“On the upside, if Bitcoin accepts the $70,000 level, it can quickly rally 8%-10%.
From a technical perspective, BTC price action is forming a V-shaped recovery chart pattern on the four-hour chart as shown below.
The BTC/USD pair is testing a key area of resistance defined by the 20-period EMA at $67,500 and the 200-week EMA at $68,000.
Bulls should push the price above this level, raising the possibility of a rally towards the neck of the $72,000 pattern.
According to Cointelegraph, if Bitcoin breaks $72,000, it will revive hopes of a recovery to the 20-day EMA at $76,000 and finally, the 50-day simple moving average (SMA) above $85,000, bringing the total gain to 26%.
The liquidity risk is close to $80,000
The exchange's order-book liquidity data from CoinGlass showed Bitcoin's price centered around two walls of demand below $75,000 and around $80,000.
BTC liquidity is above $72k and stacked in the neighborhood of $77k to $80k.” Bitcoin analyst ZordXBT said in a recent post on X.
Below the spot price, the bid order was dropping to $64,500, “where I found my limit orders,” the analyst added:
“If the market holds its own here, it can easily eat away at those liquid bubbles.”
As the above chart indicates, if the $72,000-$75,000 level is broken, it could create a liquidity squeeze, forcing short sellers to close positions and take the price towards $80,000, which is the next major liquidity cluster.
Zooming in, Ted Pillow highlighted significant bid sets at $65,000 and ask orders around $68,000.
I think the $65,000 re-visit and the $68,000 pump will both happen soon.
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