Bitcoin (BTC) tapped $70,000 during Wednesday’s New York session as bulls targeted sell liquidity.
Key takeaways:
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BTC price support must hold above a key trendline at $68,000 for the rebound to continue.
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$80,000 is a key level to watch as the next big liquidation cluster above.
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Spot Bitcoin ETF inflows attracted half a billion dollars in inflows on Wednesday.
Bitcoin must close week above $68,000
Data from TradingView showed the BTC/USD pair at $68,480 on Bitstamp. This is just above the 200-week exponential moving average (EMA), which is currently at $68,338.
Related: Bitcoin tops $69.5K after stocks rebound, strong earnings data boost risk appetite
Analyst Rekt Capital spotted Bitcoin facing resistance from this trendline, saying that the latest recovery could turn into a “post-breakdown retest of the EMA into new resistance” based on historical price action.
“The moment of truth is coming for Bitcoin,” Rekt Capital said, adding:
BTC/USD weekly chart. Source: Rekt CapitalZooming in, fellow analyst Jelle said that the price needs to turn the 50 EMA (at $68,000) on the four-hour chart into support to confirm the recovery.
BTC/USD four-hour chart. Source: JelleAs Cointelegraph reported, the BTC/USD pair may rally to $74,508, where sellers are likely to step in, if the 20-day EMA, currently at $69,220, is broken by the bulls.
Will liquidations drive BTC price to $80,000?
Several traders are anticipating a possible liquidity grab where a cluster of ask-orders are placed above $72,000.
The latest data from monitoring resource CoinGlass showed BTC price tapping the liquidity around $70,000, with the bulk of interest still clustered above the spot price.
About $2 billion in ask orders are sitting between $72,450 and $75,000.
Bitcoin liquidation heatmap (screenshot). Source: CoinGlassIf the $75,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $80,000, the next major liquidity cluster.
“Bitcoin’s liquidity hunt has only just started,” analyst AlphaBTC said in his latest post on X, adding:
Spot Bitcoin ETF inflows support BTC’s upside
Institutional demand is showing signs of a comeback, with US-based spot Bitcoin ETFs recording inflows for two consecutive days, according to data from Farside Investors.
Investors poured a total of $765 million into these investment products on Tuesday and Wednesday, with $507 million flowing into the funds Wednesday, the largest since Feb. 2.
Spot Bitcoin ETFs flows table. Source: Farside Investors“ETF inflows and short liquidations doing the heavy lifting,” X user Raster said in a recent post, adding:
This growing demand-side pressure could push BTC prices higher, particularly if combined with growing adoption and whale accumulation.
Source: ShahThis 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. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
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