With Bitcoin likely to hit $75,000 this weekend, a massive sell-off has sent its price plummeting more than 8%. The recent bull run has shown enough strength that market participants are very optimistic about the upcoming trend. This led to a sharp rise in funding rates, which may have resulted in a short-term decline that wiped out a lot of long-term leverage.
Although some have fallen into the FUD trap, the BTC bull run is not over yet and the bull run appears to still be under control. A correction is always necessary for a healthy upward trend, and importantly, the halving is fast approaching right after the correction, which could have a major impact on the cryptocurrency space. Therefore, $100,000 may remain a higher target for a continued upward trend, but in the near term, the price is expected to consolidate below $74,000 for some time.
Coinglass’ liquidation heatmap indicates that the bears have capitulated around the $74,000 area as there may be a lot of short selling pressuring profits from here. Additionally, there appears to be enough supply to liquidate a long position at $66,000, which could be one of the strongest supports at the moment. Therefore, we can conclude that the price may hover within the range until a major breakout appears on either side, which may result in the start of strong volume.
What’s next for BTC price?
BTC price traded within a rising wedge in the short term, so a slight decline was expected after reaching the peak. As a result, the price is working hard to break off the lower support zone and trigger a healthy rebound. However, sales volume appears to be somewhat unstable, suggesting that the weak trend is likely to continue. This could lead the price to test $65,000, but if the bulls do not hold, a sharp downtrend could drag the token towards the local support at $63,000.
Conversely, if the bulls succeed in initiating a bounce above $67,000, Bitcoin price is believed to return above $70,000, but could face rejection just below $74,000 again. This pattern could continue until the Bitcoin halving, after which we could witness a major shift in market sentiment and thus massive price swings.