BTC needs to recover this crucial level to aim for new all-time highs

Bitcoin is showing strong signs of a bullish recovery, with its price approaching the key resistance level of $70,000.

Buyers are focused on breaking this critical threshold, aiming to reach a new all-time high by the end of the year.

Technical Analysis

By Shayan

The daily chart

Bitcoin price action on the daily chart reflects a significant bounce after finding support at the Fibonacci retracement levels of 0.5 ($56k) and 0.618 ($52k). This support zone has repeatedly stopped bearish attempts and acted as a base for buyers to re-enter the market.

Increased buying pressure has allowed Bitcoin to retrace the 100- and 200-day moving averages, indicating a shift to bullish sentiment. Bitcoin is now testing the $70,000 resistance region, and a successful breakout could lead to a strong move to the upside, potentially fueled by a brief squeeze, reinforcing the uptrend.

The 4 hour chart

On the 4-hour chart, Bitcoin’s bullish momentum is more evident. The asset saw a strong bounce off the lower boundary of the ascending wedge near $58,000, which fueled a strong uptrend. This move pushed Bitcoin above its previous significant swing at $66,000, marking a higher high in the 4-hour period.

Now, BTC is consolidating within a narrow range between $66,000 and $70,000. A break above the $70,000 resistance level and the upper boundary of the wedge would confirm the continuation of the uptrend, potentially pushing Bitcoin towards a new mid-term ATH.

Chain analysis

By Shayan

Bitcoin is experiencing increasing buying pressure and a break above the critical $70,000 level appears imminent. The futures market provides more insight into the underlying dynamics, suggesting that this threshold could trigger a significant short-selling event, amplifying the bullish trend.

Liquidity concentration has moved above the $70,000 mark, making this price range a focal point for market participants. Large pools of liquidity above this level indicate that a breakout would likely attract more buyers and force short sellers to close out their positions, fueling bullish momentum.

This scenario points to a possible short constraint, where a cascade of short liquidations could propel Bitcoin past $70,000. Given the current technical setup and positioning in the futures market, Bitcoin is expected to maintain upward pressure soon. A breakout could lead to a quick move above $70,000, with further gains possible as the liquidation process unfolds.

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