By Franklin Smith
While publishing this content, the world’s largest cryptocurrency trades at $64,139. As Bitcoin inches close to its record high, it appears almost pointless to predict possible retracements. However, as most individuals in the crypto market anticipate a $70K conference in the coming few days, the crypto has a slight chance to endure a correction.
Without going against BTC’s rally, market players may have to contemplate some contributing factors to Bitcoin’s trend in the past. Moreover, Bitcoin investors should consider the facets in the current market conditions.
Will BTC Follow Liquidity Pools Once More?
Though BTC oscillates at its peaks, market participants should beware of increased liquidity around the $62,000 price point. Meanwhile, analysts have identified BTC follows liquidity pools when witnessing high price movements. Will the dominant coin follow capital actions at the moment?
For now, as liquidity hovers at the $62,000 range, BTC price might near these values with time as investors might liquidate their positions or add more margin. As Bitcoin moves sideways, the pools might be vital as far as future price actions are concerned.
Supply and Demand Favors Bitcoin
For now, Bitcoin’s outlook might fit the no man’s land narrative. Data shows Bitcoin’s 24Hr HODL has been surging as the token records steadily rise. Remember, price uptrends and 24Hr HODL rate increases show a sustained demand rise from spot purchasing. However, BTC’s price actions appear tricky as the MVRV indicated probable profit-booking by investors.
Keep in mind that higher MVRV translates to profit-taking by traders. However, while publishing this article, there’s no maximized selling pressure hint.
However, Bitcoin has been rising slowly but steadily, fulfilling analysts’ predictions over the past few months. If the coin maintains its uptrends, it can rally beyond its record highs in the session to come.
Now What?
From a market structure perspective, Bitcoin lacks a bullish divergence for now. However, the 12-hour price chart highlights a fragile bearish divergence. However, as the Relative Strength Index seems unwavering on the price chart, we cannot annul the possibilities of a plunge towards $60,000. Therefore, Bitcoin may still suffer retracements despite the high trading range.