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Bitcoin Trades Sideways Near an ‘Inflection Point’…Focus on Whether It Breaks Above $70,000
Summary
- Bitcoin has been trading sideways in a $65,000–$70,000 range, with short-term technical indicators and derivatives data pointing to a potential inflection point.
- A scenario was presented in which a break above $68,000 could trigger a rebound to $71,500 or higher, while a drop below $66,000 could lead to a retest of support at $62,000–$60,000.
- A rise in futures open interest, an uptick in the funding rate to 0.046%, deleveraging, and specific liquidity clusters and a compression zone were cited as key variables for the next directional breakout.
As Bitcoin (BTC) continues to move sideways in a range between $65,000 and $70,000, short-term technical indicators and derivatives data are pointing to a potential inflection point.
According to Cointelegraph on the 18th (local time), Bitcoin has traded within the $65,000–$70,000 band over the past two weeks. On the hourly chart, a descending channel has formed, while the relative strength index (RSI) has shown a bullish divergence.
A bullish divergence refers to a pattern in which the RSI prints higher lows while price makes lower lows or holds at the same level. This suggests that short-term selling pressure is easing. Analysts say that if Bitcoin breaks above $68,000, a rebound toward external liquidity and resistance zones above $71,500 could be possible.
However, a drop below $66,000 would invalidate that scenario. In that case, higher-timeframe support between $62,000 and $60,000 could be put back to the test.
Derivatives indicators are also being interpreted as signaling an imminent directional move. Over the past two days, Bitcoin futures open interest rose about 3%, from $15.1 billion to $15.5 billion. Over the same period, the price edged lower. This suggests some traders established new long positions around $66,000.
Funding rates also climbed to 0.046%, indicating a growing share of long positioning in the futures market. Still, since Feb. 15, roughly $250 million in long positions have been liquidated below $67,000, meaning excessive leverage has largely been flushed out. Reduced leverage could contribute to near-term price stability, according to the assessment.
Based on CryptoQuant data, Binance Bitcoin futures power’s 30-day change indicator fell to -0.18. Analyst Amr Taha said, “This indicator has fallen to the levels seen in April and May 2024,” adding, “Back then, after a deep negative reading the indicator rebounded, and Bitcoin went on to a strong rally above $100,000.”
Spot order-book liquidity is another key variable. Analyst Dom assessed that liquidity is thin between $66,000 and $69,000, diagnosing the current move as a compression phase ahead of a directional breakout. Another analyst, trader Daan, interpreted it by saying, “Based on the liquidity heatmap I shared, large liquidity clusters have formed below $66,000 and above $71,000.”
YM Lee
20min@bloomingbit.ioCrypto Chatterbox_ tlg@Bloomingbit_YMLEE
