Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn

BTC price to retest $72K as Bitcoin sets up $7B liquidation showdown

CointelegraphCointelegraph2024/07/24 14:25
By:William Suberg

Bitcoin ( BTC ) offered a short-timeframe rebound at the July 24 Wall Street open as a popular analyst eyed a “tug-o-war” on exchanges.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin "pullback" preserves key support

Data from Cointelegraph Markets Pro and TradingView showed BTC price action targeting $67,000, up around 1% on the day.

A trip lower, which some had anticipated , nonetheless preserved key support at both $65,000 and short-term holder realized price at $65,110.

Source: Rekt Capital

The latter level, as monitored by onchain analytics platform Glassnode , represents the aggregate cost basis of Bitcoin speculators, and was recently reclaimed as support after a brief absence.

Bitcoin short-term holder cost basis. Source: Glassnode

“Bitcoin has successfully reclaimed the key breakdown area,” popular trader Jelle told X followers in one of his latest posts, covering the 4-hour chart.

“With local market structure firmly bullish, it looks like the market wants to give $72,000 another test.”
BTC/USDT chart. Source: Jelle/X

Jelle added that data from onchain monitoring resource CoinGlass put potential short BTC liquidations around that area at $7 billion.

Bitcoin exchange liquidation map (screenshot). Source: CoinGlass

As short timeframes narrowed Bitcoin’s trading corridor, attention thus turned to the longer-term picture.

“Bitcoin Has now consolidated at the previous cycle's high for 141 days,” fellow popular trader Daan Crypto Trades noted on X.

“This is by far the longest time it has taken to fully break through a previous all time high. On the other hand, $BTC reached the all time high before the halving this cycle which was much faster.”
BTC/USD comparison. Source: Daan Crypto Trades/X

Exchange BTC balances creep up

Weighing bullish and bearish market factors, meanwhile, Willy Woo, creator of onchain statistics platform Woobull, flagged two hurdles for Bitcoin to overcome next.

Related: Bitcoin ‘massive rally’ due as buy signal hits for 1st time in a year

These included payouts to creditors of defunct exchange Mt. Gox, still ongoing , and the accompanying return of coins to exchanges.

“As for bearish signals, we are seeing a build up of coins entering spot exchanges,” he wrote in part of an X thread on July 23.

“Of note is 50,000 BTC from MtGox being sent to Kraken, and that's seemingly being front run by others sending their coins in also.”
Bitcoin inventory on exchanges. Source: Willy Woo/X

Woo also suggested that the launch of the United States spot Ether exchange-traded funds (ETFs) may siphon capital out of Bitcoin.

“Some of the capital in BTC ETFs may rotate into the ETH ETF, hard to estimate how much, but this is a risk,” he argued.

As Cointelegraph reported , the spot Ether ETFs saw net inflows of $107 million on their first day of trading — around one sixth of Bitcoin’s first-day equivalent in January.

“In summary we have a tug-o-war happening on demand and supply. IMO the bullish factors overpower the bearish factors,” Woo concluded.

“In the short term BTC only needs to break 73k in order to light the fuse to short squeeze to 77k, above that it's nothing holding it down for price discovery.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Stake to earn
CEC, QTLX, GDV and other popular new coins are in hot progress!
Stake now!

You may also like

Critical FED Interest Rate Decision Expected in Bitcoin Today! What Time Will It Be Announced? Here Are the Expectations and Things to Know!

While the FED's interest rate decision is awaited in Bitcoin today, it remains unclear whether the FED will reduce interest rates by 25 basis points or 50 basis points.

Bitcoinsistemi2024/09/18 20:06

Last Minute Interest Rate Announcement from BofA and Two Companies – Here is the Decision They Expected Just Ahead

Analysts from BofA and two other firms shared their latest expectations for the Fed's interest rate decision, which is now just minutes away.

Bitcoinsistemi2024/09/18 20:03

The FED’s Decision is Just Minutes Away: Here is the Decision Time and Expectations According to the Latest Data

The FED's eagerly awaited decision is now just minutes away. So, what are the expectations according to the latest data?

Bitcoinsistemi2024/09/18 20:03