Bitcoin price shows signs of a strong bullish trend, with analysts watching carefully the support and resistance levels. Data from CoinGlass shows that there is ample liquidity in the vicinity of $58K price level. This rate of increase in the liquidity is considered significant for the traders as it signals that Bitcoin may be about to make a major shift in the market soon.
#BTC OrderBook Heatmap
— CoinGlass (@coinglass_com) October 11, 2024
a lot of liquidity at $58000.🧐🧐🧐
stay safe
👉https://t.co/z9WYoWqeVP pic.twitter.com/2GQ1Jh56VS
The current price action captures a new market structure of Bitcoin. Following the fall due to long liquidations, Bitcoin managed to form a higher low. This local bottom now points to a possibility of an upward movement. For this bullish run to continue, Bitcoin must cross and sustain above the key resistance levels such as the Daily 200 Moving Average (200MA).
Liquidity Concentration at $58,000
The recent market analysis also revealed a massive liquidity accumulation at $58,000. The heatmap from CoinGlass shows that this level could be very important for Bitcoin’s short-term price movements. This region is an area of interest for traders as it could give Bitcoin the support it needs to continue an upward trajectory again.
If the price breaks above the 200MA and this week’s high above the previous week high it may trigger a broader bullish rally. Experts believe that the next level of focus could be at $70k, which would be a major psychological as well as technical level. This could also act as a sign of even greater momentum as the market moves deeper into Q4.
U.S. Inflation Rises, Fed Rate Cuts in Doubt, Bitcoin DropsMetrics Indicating a Bullish Outlook
Other important indicators like the Short Term Holder Market Value to Realized Value (STH MVRV) and Spent Output Profit Ratio (SOPR) are also displaying green light. Both metrics are now testing the neutral ‘1’ line. An upside break from this level will create even more evidence for higher continuation, especially for short term traders and long-term holders.
With the market currently in a sensitive phase, Bitcoin’s ability to hold above critical support levels and overcome resistance will likely determine the next direction for its price. At press time, Bitcoin trades at $60,687, 0.28% drop in the last 24 hours.
