Bitcoin May Soon Push Higher After Taking Out Key Liquidity Levels

Bitcoin faced a slight rejection above $10,500 overnight, with bulls being unable to maintain the strong momentum that they had built throughout the past several weeks and months.

This has contributed to the cryptocurrency’s technical weakness and may indicate that some downside is imminent in the near-term.

It is important to note that BTC has yet to break below its support at $10,200, which has been defended by buyers on multiple occasions throughout the past several days and weeks.

While speaking about this latest move, one explained that the benchmark crypto is now approaching a few key liquidity levels. How it reacts to these levels should offer insight into its near- outlook.

Bitcoin Erases Yesterday’s Gains as Buyers Lose Their Momentum 

At the time of writing, Bitcoin is trading down just under 2% at its price of $10,300.

This is around the price at which it has been trading throughout the past few days and weeks, with buyers being unable to garner any strong momentum as sellers continue defending $10,500.

For a brief moment overnight, the cryptocurrency surged as high as $10,560 before plunging towards $10,280. This is around the price at which it found some strong support that slowed its descent.

Analyst: BTC Likely to Continue Plunging Until It Takes Out Key Liquidity Targets

While speaking about the cryptocurrency’s near-term outlook, one explained that he is watching for Bitcoin to reel towards $10,100 as it takes out some downside liquidity.

He does state that he expects the benchmark crypto to continue climbing higher once it takes out these key levels.

“As usual, liquidity levels is where it’s at. Liqs get taken, price dumps. We just took some liqs again. I can see this going back up from here, otherwise it maybe dumps a bit further to 10100,” he explained.

How the aggregated market trends in the coming few hours should provide insight into the significance of this recent Bitcoin rejection.

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