Bitcoin is at $64,000, but will liquidity pools catch it off guard

Bitcoin, at the time of publication, was valued at around $ 64,000. So close to his ATH, it seems almost futile to project possible corrections. However, while a majority of the community expects a high of $ 70,000 in the next few days, the likelihood of a correction is strangely still intact.

Without committing the cardinal sin of rebelling against the Bitcoin rally, there are a few factors that have played a role in guiding the trend of BTC in the past. And, it’s worth keeping them in mind in the current market situation.

Will Bitcoin Track Cash Pools Again?

Source: jarvslabs

While Bitcoin is hovering around its all-time high range, it’s important to note that there is more liquidity below the $ 62,000 price tag. In the past, we have identified that Bitcoin follows these liquidity pools because during times of high price action, the asset tends to follow capital.

Right now, since there is more liquidity in the $ 62,000 price range, the price may approach these values ​​over time as traders look to add more margin or liquidate their positions. positions.

As the price moves sideways, these pools may become larger in the future.

Supply-demand strongly favors BTC

Source: jarvslabs

This is where the no man’s land narrative comes into play for Bitcoin. According to The data, the 24-hour HODL rate jumped for Bitcoin, alongside its rising price. If the price is on the rise and the 24 hour HODL rate increases, this indicates a sustained increase in demand from spot purchases.

This is where Bitcoin’s price movement gets trickier as the MVRV has suggested the possibility of taking profits for investors.

In our previous articles, we mentioned that a higher MVRV opens the narrative of traders taking profit. However, at the time of going to press, there was no sign of excessive selling pressure.

When, how and where?

Source: trading view

Now, from a purely structural market perspective, there is no bullish divergence for Bitcoin at this time. But, a slight bearish divergence can be seen on the 12 hour chart.

With the relative strength index or RSI decreasing on the chart and the price appearing to rise, a pullback to $ 60,000 is not beyond the immediate occurrence.

Therefore, regardless of its high trading range, Bitcoin’s price may still experience corrections.

Source link

Comments are closed.