Last week, Bitcoin bulls appeared to take control of the price, eventually pushing it back above $73,000. There has been some deceleration since then, with the bears looking to retest the $70,000 level over the weekend. For now, the bull market is still open, but there is still a chance that prices will crash again. To that end, there is an important support level for Bitcoin price if the bulls do indeed sustain the uptrend.
Bitcoin's magic point is at $70,500
Bitcoin price is currently moving towards an important level after an initial rejection from the range highs. According to crypto analyst Max Trades, the cryptocurrency is heading towards the next major support level that the bulls need to hold. This level is located exactly at $70,500 and has been the main support since the uptrend began.
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This important support level is important to maintain as it will determine whether the uptrend continues. Currently, the high of the range is still above $72,000, and that is where the bears are seeing the most resistance. Therefore, the price needs to break out of the high of the range to continue rising or break out of the major support to resume the downtrend.
Another big factor driving prices down is the fact that there is still an unfilled CME gap. The CME gap is below $67,000, making it a magnet for bears. With this in mind, if Bitcoin price eventually breaks through the key support at $70,500, we will see the bullish structure that started developing last week begin to weaken.
A push towards the CME gap would mean a break below $67,000 and a push towards $66,000 to make a bottom. However, this still does not indicate the bottom of the downtrend and may push further down to gain more liquidity.
The key liquidity level is below $65,000, and whales could head there to make the most of this move. This means that even if a major support breaks, it is only the beginning of a trend. The final move could set off a chain of events that could push the stock price even lower.
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However, cryptocurrency analysts explain that Bitcoin price is not bearish at the moment. This is because the price remains range bound and trading above key support levels will sustain the price. “The important thing to keep in mind is that BTC is still range bound and as long as that is the case, the price will be driven primarily by liquidity and will track both sides.”
Featured image from Dall.E, chart from TradingView.com
