Key Points
- Bitcoin’s weekly chart shows a bearish structure, with potential for losses to reverse next week.
- Liquidation levels indicate Bitcoin might move towards $69k next week, but also show potential for drops to $52k or $46k.
Bitcoin’s bearish structure on the weekly chart hints at a potential reversal of recent losses. However, it remains uncertain whether the bulls can push prices beyond $69k.
On Thursday, 25th July, Bitcoin [BTC] prices fell by an additional 2.2%, and the daily trading session isn’t over yet. Since Monday, Bitcoin has experienced a 5.84% drop. The previous breakout past $60k was significant, but the price seems to be heading in that direction again.
Reasons for Bitcoin’s Recent Losses
While Bitcoin doesn’t necessarily need a specific reason or news event to trend in a particular direction, the recent losses can be attributed to certain factors. In a post on X, crypto analyst CrypNuevo predicted that Bitcoin prices would fall towards $64.5k due to the liquidity pool in this area on lower timeframes. This prediction has proven accurate so far, with BTC currently trading at $64.2k. He also predicted a bounce towards $68.9k.
Looking at the 7-day liquidation heatmap, the $64k-$64.8k zone is a cluster of liquidation levels, making a retracement to these levels in search of liquidity feasible. The $69k level also has bright liquidation levels, potentially attracting prices. However, the $52k and $46k levels also show clusters of liquidation levels, indicating possible tests of these levels.
Weekly Chart Indicates Bearish Continuation
Trader Mayne, a popular crypto trader, pointed out on X that the weekly structure remains bearish. This was after the higher low from April at $56.5k was breached in early July. The local high at $72k was not visited or broken in the 1-week timeframe, indicating a possible bearish swing. This could be unfavorable for long-term holders.
The Fibonacci retracement levels show the $52k and $46k levels, which are also liquidity pools, as the 61.8% and 78.6% retracement levels. These levels could become denser over the coming days, increasing the likelihood of BTC testing them.
