Bitcoin (BTC) rose by more than 9% in the last 24 hours. However, the $68K resistance was not broken. Selling pressure halted the optimistic recovery. Bitcoin fell below $70K on 15th March. It. then hit a 10-day low of $60.9K before rising yesterday.
Will buyers be able to overcome the $68K barrier and set another new high for Bitcoin?
What is BitMEX?
BitMEX operates a cryptocurrency exchange and derivative trading platform. BitMEX provides a variety of cryptocurrency-based financial instruments, such as perpetual contracts, futures contracts, and options contracts.
Where lies the liquidity in Bitcoin?
The ability to turn assets into cash rapidly and affordably is referred to as liquidity.
According to BitMEX Research, Bitcoin ETFs witnessed their third consecutive day of withdrawals. The net outflows are a total $262 million. With the much-anticipated Bitcoin halving still 30 days away, the outflows indicated price consolidation moves by investors.
Futures market participants continued to place big bets on Bitcoin, experiencing another surge even in the face of withdrawals from Bitcoin ETFs. According to Coinalyze data, open interest (OI) increased by 2.33% over the past day. As a result, there is now $18.4 billion worth of Bitcoin in open interest.
On the other hand, according to CoinGlass’ liquidation Heat map, more than $4 million worth of short positions could be liquidated if BTC crosses the $70,000 threshold.
Although there is still an optimistic consensus in the market regarding Bitcoin, the selling pressure could hinder the price rise.
Can Buyers push Bitcoin to $68k?
The four-hour price chart revealed a decline in the amount of capital flowing into the spot market for BTC. CMF decreased from +0.07 to +0.02, but was still above zero.
To emphasise the decline in short-term buying pressure, the Relative Strength Index (RSI) also reached the neutral 50 area.
There are two possible outcomes for Bitcoin. The first is a retest of the resistance level at $68.3k. If buyers falter this time, Bitcoin could drop to $64,000. But, if buyers are able to break the selling barrier at $68.3k, Bitcoin could reach $70k. With this success, Bitcoin will likely reach an all-time high.
At the moment, the Bitcoin price is below the 100-hour simple moving average and above $66,000.
