The price of Bitcoin is engaged in a persistent struggle to surpass the pivotal $70,000 threshold, with recent efforts falling short. This failure to establish a firm close has impacted long traders significantly, resulting in substantial liquidations.
Nonetheless, overall market sentiment continues to be extremely positive, as traders maintain an optimistic view on Bitcoin’s potential for additional gains.
Bitcoin Bulls Face Setbacks
In the past 24 hours, Bitcoin has witnessed long liquidations amounting to $50 million, coinciding with a 2% decline in its price. These liquidations represent the most considerable losses for long traders in the last two weeks, highlighting the difficulties in sustaining price support around the $70,000 level. This recent downturn has influenced investor sentiment, prompting some traders to consider the possibility of further declines.
This series of long liquidations underscores the inherent volatility in Bitcoin’s price movements, where even minor declines can provoke substantial market responses. Despite this situation, the determination of long traders remains noteworthy.
A good number of traders are holding onto their positions, indicating a belief in Bitcoin’s capability to navigate these challenges and continue its upward trend. This perseverance suggests that market confidence is largely sustained, even in the face of temporary setbacks.
Read more: What Took Place During the Last Bitcoin Halving? Insights for 2024
The macro momentum for Bitcoin appears robust, with Open Interest (OI) reaching an unprecedented high of $32.9 billion. This peak indicates significant engagement among traders as more capital flows into Bitcoin, despite the recent wave of liquidations.
This heightened Open Interest points to the fact that Bitcoin’s recent volatility has not dissuaded trader confidence. Instead, it reflects that both institutional and retail investors are committing substantial capital, showcasing faith in the long-term prospects of the asset.
BTC Price Forecast: Aiming for a Breakout
Currently, Bitcoin is trading at $67,007, roughly 10% below its historical peak of $73,800. At this juncture, BTC is also nearing a possible breakout from a descending wedge pattern, a technical formation typically associated with impending significant price movements. A breakout from this formation could set up Bitcoin for a substantial ascent toward the $73,000 level.
The wedge pattern suggests a potential rally of 27%, which would place Bitcoin’s target price at $88,185. While this lofty target is within reach, the more immediate focus remains on BTC breaking through its historic high of $73,800 as it consolidates its upward path.
Read more: History of Bitcoin Halving: What You Need to Know
However, Bitcoin continues to face challenges in achieving a definitive breakout, making $67,000 a crucial support level. A failure to maintain this support could result in BTC declining to $65,000, potentially postponing the expected breakout and complicating the bullish outlook.
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