Key Points
- Bitcoin’s key level at $59.4k is significant from both technical and liquidity perspectives.
- A slump in Bitcoin demand and ETF outflows suggest a possible larger price correction for the crypto market.
Bitcoin [BTC] recently experienced a reduction in demand as well as outflows from ETFs. This strongly indicates a potential larger price correction for the crypto market.
ETF platforms have recorded zero flow days, a phenomenon that is not uncommon for exchange traded in any sector.
Bitcoin’s Support Zone
For the fourth time since late February, Bitcoin prices have neared the support zone at $60k. Technical indicators suggest that the bulls may not succeed in maintaining this level.
In the past seven weeks, buyers have managed to hold on to the $59.2k-$61k zone. During this period, the OBV (On Balance Volume) established a support level, marked in orange.
However, the recent surge in selling volume pushed the OBV below this pivotal level. This could be an early indication that prices are likely to go lower and that the $60k support zone may not be defended this time.
Further Losses Expected
If Bitcoin prices slump below $60k this week, traders and investors should brace for further losses. The RSI (Relative Strength Index) underlines firm bearish momentum.
Beneath the $59.4k Fibonacci support level, $55.5k and $50.5k are the next higher timeframe areas of interest. Meanwhile, the cumulative liquidation levels delta is negative, suggesting that short liquidation levels significantly outnumber the long liquidation levels.
This implies that a move upward is favored as prices are attracted to liquidity pockets. However, a $342 million liquidation cluster at $59.4k could mean a likely move to the $59k level to sweep these long liquidation levels.
Despite the lopsided cumulative liq levels delta, a bounce from $59.4k is not guaranteed under the current conditions, given the intense selling pressure.
Please note, the information presented does not constitute financial, investment, trading, or other types of advice and should be considered as the writer’s opinion only.
