Bitcoin (BTC) continues to face uncertainties. Demand for spot BTC ETFs has declined, sparking rumors of a larger market correction. Some ETF issuers ended the day with zero transactions, which can sometimes be considered normal. As of the end of February, Bitcoin prices visited the $60,000 support level for the fourth time. Can the bulls defend this level?
Bitcoin’s Liquidity Zone
Bulls have clearly defended the area between $59,200 and $61,000 over the past seven weeks. During this period, the OBV created support as indicated by the orange color. However, the recent sharp sell-off dropped the OBV below this crucial level.
This could signal that Bitcoin’s price might drop and the critical $60,000 support level might not hold this time. The RSI indicator also pointed to strong downward momentum.
Below the $59,400 Fibonacci support level, there are next higher timeframe support levels at $55,500 and $50,500.
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Therefore, investors and traders could be prepared for a possible larger loss if movements below $60,000 occur throughout the week.
The Future of Bitcoin
Total liquidation levels delta showed a negative outlook, with short liquidation levels significantly higher than long liquidation levels.
Additionally, a $342 million liquidation zone at the $59,400 level draws attention. Combined with the Fib level, this suggests a likely move to the $59,000 level to liquidate these long positions.
Following this downturn, Bitcoin prices could move towards new highs to capture liquidity in the upper region. Despite this, selling pressure was observed to be intense.
Despite the disproportionate cumulative liquidity levels delta, a bounce from the $59,400 level under these conditions may not be guaranteed.
While all this was happening, Bitcoin continued to trade at the $63,500 level. This price view could represent an increase of over 4% since the decline observed since Saturday.
