- Bitcoin is showing a short-term downward trend.
- Liquidity pools could push the price to $63,000 in the coming days.
When the price fell to $49,000 two weeks ago, Bitcoin (BTC) miners saw a sharp decline in their profit margins, leading to miner capitulation and increased capital outflows.
The increase in hash rate and mining difficulty put smaller miners in a difficult position.
Technical analysis and liquidation heatmap gave indications that a BTC recovery would face a massive hurdle above the psychological resistance of $60,000. Do the bulls have enough ammunition to break this barrier?
The momentum could shift towards the bulls
Source: BTC/USDT on TradingView
The RSI on the 12-hour chart has been trading around the neutral 50 level for the past week. The $61,500 area has consistently rejected the price during this period.
At press time, the RSI appeared to be attempting to rise above 50 again.
The OBV has also been rising over the past two days, suggesting that demand could be enough to push BTC to the $63,000 mark. However, an imbalance and a resistance level converged there.
Bitcoin bulls will have a tough time battling the sellers, but there is one factor that could help them.
Magnetic zones favor BTC bulls in the short term
Source: Hyblock
The liquidation heatmap showed a high concentration of liquidation levels at $63,000 and $67,100.
The proximity and density of the liquidity cluster at $63,000 could see Bitcoin make a jump higher and capture the region before a decline.
Read Bitcoin (BTC) price prediction 2024-25
Liquidity above $65,000 has also been a magnetic zone and a move to $67,100 cannot be ruled out.
However, traders must keep in mind that BTC has a bearish market structure on the weekly chart and needs a rise above $69,500 to change this situation.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and reflects solely the opinion of the author.
