Summary
- It said about $443 million in buy orders is waiting in the $70,000 to $72,000 range for Bitcoin.
- It said about $2 billion in long positions faces liquidation risk near $70,000, while more than $5 billion in short positions is clustered near $78,000.
- It said investors have committed about $10 million to $70,000 strike put options as they brace for the possibility of a deeper correction.
Forecast Trend Report by Period
Bitcoin is approaching the key $70,000 support level, with investors lining up more than $500 million in buy orders at lower levels as they watch for a rebound.
Cointelegraph reported on May 29 that 6,235 BTC in spot buy orders were sitting between $70,000 and $72,000. At current prices, that amounts to about $443 million.
The largest concentration of bids is just above $70,000. Traders are watching that area as a key demand zone that could absorb near-term selling pressure.
Below $70,000, another 1,012 BTC in buy orders has accumulated near $68,505, worth about $69 million. Below $68,500, however, resting buy interest falls off sharply.
Liquidation data also highlight the importance of $70,000. CoinGlass data show about $2 billion of long positions are exposed to liquidation risk around that level. By contrast, more than $5 billion of short positions are clustered near $78,000.
If Bitcoin absorbs liquidity around $70,000 and rebounds, short liquidations could cascade and amplify the advance, some traders say.
The technical backdrop remains weak. Since breaking below support at $74,800, Bitcoin has stayed in a downtrend marked by lower highs and lower lows. The token is now testing the lower end of a descending channel in the $72,000 to $73,000 range.
The relative strength index, or RSI, has fallen to about 33, the lowest level since February. With the gauge still below the neutral 50 mark, sellers remain in control in the short term.
Crypto trader Ardi said the $74,500 to $75,500 range is acting as resistance across multiple time frames. If Bitcoin fails to break through that zone, it could retest $71,500, Ardi added.
Attention is also focused on whether Bitcoin can defend $70,000 in the options market. Glassnode said investors recently spent about $10 million on put options with a $70,000 strike price. Put options profit when prices fall, showing market participants are preparing for the possibility of a deeper correction.
YM Lee
20min@bloomingbit.ioCrypto Chatterbox_ tlg@Bloomingbit_YMLEE
