Bitcoin Liquidates Traders Up and Down Ahead of Local Support Retest
Bitcoin sparked mass long and short BTC liquidations while staying rangebound around $70,000 as analysis predicted a local support retest.
Bitcoin (BTC) eyed multiday lows into Tuesday’s Wall Street open as analysis warned that bears were trying to “regain control.”
Key points:
Bitcoin is setting up a support retest at the bottom of its local range, says analysis.
Bears want “control” again, with liquidations impacting both long and short traders.
An ongoing lack of demand is adding to Bitcoin bulls’ problems.
Bears battle for local BTC price trend
Data from TradingView recorded 2.3% daily BTC price losses, with $68,500 now a focus.
Part of a narrow local trading range, that level still held significance for market participants eyeing liquidations on exchanges.
These remained high despite relatively calm price behavior, with the 24 hours to the time of writing seeing over $250 million across crypto, per data from CoinGlass.
“$BTC pumped to $71,000 yesterday liquidating $130M shorts. Then, $BTC dumps straight back to $68,000 liquidating another $150M longs,” CryptoReviewing, the pseudonymous cofounder of trading community Wealth Capital, wrote in a post on X.
“Now, above at $72,000 – $74,000 we still have large liquidity waiting to be taken. However, at $66,000 – $68,000 we have even larger leveraged liquidity building up making this the higher-probability zone for a sweep next.”
An accompanying chart captured the high-stakes liquidation potential both above and below spot price.
“Bears are attempting to regain control,” CryptoReviewing added.
Earlier, trading resource Material Indicators warned that Bitcoin was due a low-time frame support retest.
“FireCharts binned CVD shows purple whales continued selling over the last 24 hours,” it told X followers, referencing one of its proprietary trading tools.
“Things are setting up for $BTC to grind its way into a retest of local support.”
Bitcoin faces “weakening” seller absorption
Continuing on the return of sellers, onchain analytics platform CryptoQuant warned of a lack of fresh investor capital to balance exchange inflows.
Related: Bitcoin bear market not over? Trader sees BTC price ‘real bottom’ at $50K
Bitcoin appeared caught in a downward spiral thanks to a lack of “apparent demand growth.”
“Despite the increase in coins being spent, fresh capital inflows are not expanding at the same pace,” contributor CryptoZeno wrote in a Quicktake blog post Tuesday.
“Demand has slipped into negative territory, signaling that the market’s ability to absorb distributed supply is weakening. Similar divergences in prior cycles often marked transition phases where bullish momentum slowed before either consolidation or correction unfolded.”
Earlier, Cointelegraph reported on upheaval among Bitcoin miners as they upped inflows to exchanges in order to cover expenses.
Expectations of a lengthy Bitcoin bear market, meanwhile, continue to gain acceptance.
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