Bitcoin (BTC) Price Rally Faces a Roadblock as Bears Intensify Their Activity

Bitcoin (BTC) price underwent a major shift as the price is trading close to $67,000 after marking the highs close to $69,500

Bitcoin price encountered a strong resistance around $69,300, which had earlier served as a strong support level. Now, this price zone appears to be a crucial pivot, with Bitcoin (BTC) price attempting to reclaim it after a drop from the highs close to $69,500.

After marking these highs, the traders turned bearish on Bitcoin, which is evident from the futures data. A small pullback to the interim range appears to be fast approaching. In the meantime, as the traders expected the Bitcoin price to rise above $70,000 aiming for a new ATH, the bears have intensified their activity.

Bitcoin (BTC) Price Drops Below $67,000; Will It Reclaim $69,000 Or Drop Further?

The futures play an important role in determining the trend of the upcoming price action. If the traders are not sure of the trend to remain elevated, they usually open the short positions. These positions are liquidated after the price faces rejection and surpasses the region where the shorts are accumulated.

As per the data from Coinglass shared by an analyst, Ali, nearly $83.7 million in shorts have been accumulated around $69,785.

$83.7 million in short positions will be liquidated if #Bitcoin rebounds to $69,785! pic.twitter.com/oyBMTnkjtz

Hence, if the BTC price rebounds to $69,785, then these accumulated shorts could get liquidated, which may offer a fine boost surpassing $70,000. Until then, the price is expected to remain consolidated within a range.

Moreover, most of the Bitcoin futures traders on Binance are betting against the BTC price, which is evident from the majority of them entering a short trade. This suggests the bearish momentum is expected to thrive and may keep the price consolidated within a narrow range.

The Bitcoin price faced a rejection from the pivotal price zone around $69,300, which had offered a strong base earlier and now has become a strong resistance to secure. Besides, the price smashed the upper bands of Bollinger and quickly dropped. Secondly, the MACD is preparing for a bearish crossover.

Hence, the price is expected to drop and test the average bands below $65,000 if the bulls fail to defend the upper resistance of the descending parallel channel.

The bulls are leaving no stones unturned in keeping up the momentum of the rally, but the buying pressure has decreased to a large extent. If the bulls fail to reclaim their dominance, the possibility of reaching $70,000 could be delayed by another couple of months.

Moreover, the recent move suggested the start of the bull run could be fast approaching but constant rejection may weaken the bulls as well.

Therefore, it’s time to wait and watch for the next Bitcoin (BTC) price move, as losing the pivotal support could be extremely dangerous for the rally.

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