Bitcoin recently pushed into a key liquidity pocket near the $73,000 level, before facing a sharp reaction to the downside of excess liquidity. Although the structure is still holding and buyers are entering the decline, the focus now turns to whether this phase of settlement can provide the basis for a stronger push to the $80,000 area.
Clearing upper liquidity before sharp rejection near $74,000
According to the latest MMT Heatmap update from Columbus, Bitcoin experienced a significant increase in the top liquidity pocket during the overnight session. The price aggressively rose to $73,000, testing the strength of oversupply. However, this momentum was met with a strong corrective response as it approached a significant liquidity cluster located near $74,000.
This particular price action is characterized by a market testing liquidity without establishing an immediate acceptance of value. Here, there is a sweeper after which investors build positions; a standard market mechanism where areas of high interest are cleared before gathering the necessary structure to sustain a sustained move higher.
At the moment, Bitcoin remains in a reversal phase as it tries to consolidate the recovery from its previous channel resistance. This transition period is important for turning old resistance into support, which provides the technical basis for the next leg of the bull cycle.
The broad outlook remains cautiously optimistic, provided that buyer demand remains strong and does not fade any time soon. As long as bids rebound aggressively on every minor dip, the underlying market structure will maintain its bias.
Bitcoin is testing the weekly historical support of the resistance zone
The weekly chart of Bitcoin shows that the price is currently considering one of its strongest support and resistance zones, a level that corresponds to the week of March 11, 2024. Market action around such historically important areas often determines the major future directional movement, as both buyers and sellers tend to aggressively defend their positions.
Crypto analyst Christopher Inks notes that momentum indicators still have plenty of room for further upside. Both the weekly RSI and the Stochastic RSI remain far from overheated territory, suggesting that Bitcoin could still move higher and possibly push towards the $80,000 area if the bullish momentum continues.
Christopher Inks has also emphasized throughout the year that a break and close of a strong weekly candlestick above the yearly pivot at $96,071.25 would be an important signal for the market. Such a move confirms that a low period is already in place and could pave the way for Bitcoin to advance to new all-time highs.
Source: https://www.newsbtc.com/news/bitcoin/bitcoin-probes-liquidity-pocket/
