Bitcoin (BTC) Price Faces Extreme Bearish Pressure, Plunges Below $67,000

Bitcoin (BTC) price is facing extreme bearish pressure, due to which the price has plunged below $67,000, fluttering bearish flags over the crypto

Bitcoin price encountered a strong resistance at $68,500, leading to a 10% pullback in the price, as per technicals. However, the burning question remains whether there is sufficient liquidity and a catalyst to propel the BTC price higher.

Recently, as the expectations for a bull run build up, the bears seem to have rescheduled the beginning of the rally. Ever since the Bitcoin price attained highs around $68,500, speculations regarding the possibility of reaching $100K have surfaced. However, the only crucial factor that plays with the volatility is liquidity, and the point to consider is what all could be the catalyst that may revive a strong ascending trend.

Back in 2016 and 2020, the bull runs were triggered by a massive increase in liquidity. Moreover, a stablecoin like USDT or USDC’s market capitalization has risen to over $173 billion, which is the highest since the UST collapse. The stablecoins serve as the gateway to the crypto industry and hence a rise in the market cap indicates the preparedness of the bulls, as the USDT market cap is on the rise while that of BTC is stagnant.

Can this point towards a potential run in the coming days? Will the BTC price lay down a sustained upswing towards new highs?

The weekly price action of Bitcoin suggests the token to be within a bullish range as the price is attempting to break above the cup & handle pattern. The RSI has rebounded while the MACD is about to validate a bullish crossover, due to which the bullish momentum may remain upright. Moreover, if the BTC price closes the weekly trade above the parallel channel, somewhere above $67,500 to $67,800, then a probable rise above $70,000 could be imminent.

On the other hand, the FASB rule is about to be implemented, which will allow the companies to report the value of the BTC based on its level on a given exchange at the end of the required period. Currently, the S&P 500 companies are sitting on 2.5 trillion in cash and cash equivalents, which will depreciate in value with inflation. Therefore, the Bitcoin (BTC) price is right on track and hence a bullish close above $68,000 appears to be imminent for the week.

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