Key Points
- Bitcoin [BTC] has fallen below the key demand zone at $60k, indicating a potential buying opportunity.
- Market participants should watch for key levels at $59.4k and $60.7k in the short term for a possible bearish continuation.
Bitcoin [BTC] has dipped below the crucial demand zone of $60k.
This area had previously kept sellers at bay but eventually succumbed to the pressure.
CrypNuevo, a crypto technical analyst, suggested that a post-FOMC bounce to $61k could be on the horizon.
Key Levels to Watch
The short-term key levels to watch are $59.4k and $60.7k.
These levels are likely to have a significant amount of liquidity, making them critical points for a potential bearish continuation.
This expectation is due to the OBV falling below two-week support, indicating dominant selling pressure.
Additionally, the cumulative liq levels delta was significantly negative, suggesting a short-term upward move to collect liquidity and balance the market.
The $60.5k and $63.8k levels had the highest cluster of liquidation levels, so a move to these levels before a downward reversal is expected.
Realized UTXO Age Bands
CoinLupin, a CryptoQuant Insights post user, noted an intriguing trend.
The beginning of major bull runs often coincides with the smoothing process of the realized price of 1-3 month and 2-3 year bands.
This pattern was observed from January to September 2020, with prices typically consolidating near the realized prices of these age bands.
In the current cycle, there were fewer golden and death crosses between these two age bands.
However, the recent pullback could lead to deeper losses as savvy market participants buy from impatient BTC sellers.
This could be followed by the true bull run, according to the analyst.
