Bitcoin (BTC) Finds Itself at a Critical Juncture as the Market Awaits Its Next Move

In a rapidly evolving cryptocurrency market, Bitcoin (BTC) finds itself at a critical juncture. The world's leading digital asset has recently tested

Bitcoin (BTC) price has been hovering around a critical support level for the past few days. Now, as the dust settles, all eyes are on the next move. Will Bitcoin price reclaim its previous trading range or continue falling? A prominent crypto analyst shares insights into the possible scenarios.

Bitcoin price recently reached the previous range lows. Now, the question is whether this will act as a resistance retest before continuing lower or if Bitcoin price will reclaim its previous trading range. The last time the leading cryptocurrency kept the range for four months before losing it was down to $53,540.

Potential liquidation zones

There are two main liquidation zones that traders should keep an eye on. The first is at $68,000, where a large number of liquidations could occur if Bitcoin price does reclaim its previous range. Keep in mind that the price first needs to reclaim the range as seen in previous market behavior.

The second liquidation zone is at $52,000, which could potentially act as a bottom if Bitcoin has not reached its lowest point yet. Notably, this level also aligns with the 50-week exponential moving average (EMA), adding to its significance as a potential support level.

Bitcoin long and short scenarios

In the bullish scenario, if Bitcoin price does reclaim the range lows and test them as support, the next logical move would be a push toward the range highs. There is an Open Interest (OI) gap between $72,000 and $73,500, which is an interesting liquidity area that the price has avoided visiting for a long time now.

On the other hand, the bearish scenario would require Bitcoin price to be rejected at the range lows for several days. An ideal trigger for this scenario would be a false breakout above range lows, followed by an immediate retracement below resistance.

Macroeconomic factors and external events

While technical analysis provides us with interesting insights, it’s important to remember that macroeconomic factors and external events can largely influence Bitcoin price. Recent Consumer Price Index (CPI) data came in 0.1% lower than expected, which could favor a Bitcoin recovery.

Furthermore, a recent assassination attempt on Donald Trump, a now-known Bitcoin supporter and confirmed speaker at the upcoming Bitcoin 2024 conference, is bound to have unforeseen impacts on market sentiment.

As Bitcoin price tests critical support levels, the cryptocurrency community is on high alert. Will the leading digital asset reclaim its previous range or continue falling? Only time will tell and, as always, traders and investors should stay informed and cautious as the market decides its next move.

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