Key Points
- Bitcoin saw a significant number of liquidations during its recent drop, yet the higher timeframe bias remains bullish.
- Despite this, traders and investors should prepare for potential further drops towards the $60k mark due to ongoing volatility.
Despite enduring double-digit losses in the past five days, falling 16.67% from last week’s high at $72.8k to Saturday’s low at $60.6k, Bitcoin remains bullish in the higher timeframe.
This is despite $314 million worth of liquidations in the past 24 hours. However, traders and investors should brace themselves for a potential further drop towards the $60k mark. This is due to the ongoing volatility, particularly in light of the growing risk of a wider regional conflict in the Middle East.
Bitcoin’s Bullish Structure
The swing low formed at $60.7k in mid-March did not see a 12-hour trading session close below it during the recent dip, meaning the structure remained bullish. However, the momentum currently favors the bears.
The RSI showed a reading of 38.9 at press time, and the OBV has tenaciously defended a support level that served as resistance in February. Together, these indicators do not suggest that a revival for the bulls has begun.
Potential for Further Dips
Bitcoin could see another dip towards the $60k region in April due to the potential liquidity build-up around the recent low at $60.6k. The heatmap could provide more insight into the next price move.
The liquidation heatmap showed a high concentration of liquidation levels at the $60.6k mark that were taken out during the recent plunge. Since then, BTC has bounced back close to 7%, but it remains unclear whether it will be attracted to the liquidity pocket at $75k.
There is uncertainty surrounding the halving and fears of selling pressure from traditional markets in the upcoming week. As a result, it is estimated that Bitcoin may go sideways from $64k-$68.5k for a while.
Another dip to the $60k level to collect liquidity, possibly even as low as the $55k region, is anticipated before a reversal.
Please note: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
