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Bitcoin (BTC) Can Easily Hit $72,500, Here's Why

Published 06/24/2024, 06:28 PM
Updated 06/24/2024, 10:15 PM
© Reuters Bitcoin (BTC) Can Easily Hit $72,500, Here\'s Why

U.Today - Despite Bitcoin trading at the lower levels of the monthly trading range, the first cryptocurrency is unlikely to have any problems moving upwards, considering the current distribution of liquidity. The provided chart shows that the majority of selling pressure is located far above the $70,000 threshold, and the only thing needed for a reversal right now is some buying volume.

Liquidity in the $70,000-$80,000 range indicates a significant concentration of liquidation leverage. Given the upper-level liquidity, it is possible that Bitcoin will rise swiftly to reach these high-liquidity zones once it starts to rally.

Below these levels, the selling pressure becomes much less, which fosters an environment that is favorable to price growth. Right now, Bitcoin is finding support slightly above its 200-day moving average at $57,000. The bullish momentum needs to hold onto this level of technical support. The path to $72,500 and higher becomes more accessible if Bitcoin can maintain this support, and buyers intervene. In this case, the dynamics of market liquidity are crucial.

Significant buying activity can set off a chain reaction of liquidations that will quickly drive the price higher because there is ample liquidity sitting above $70,000. Furthermore, historical patterns and the behavior of the market indicate that when liquidity is strongly skewed to the topside, Bitcoin frequently sees abrupt increases in value.

Increased buying volume and upbeat market sentiment could act as catalysts for this upward trajectory, so traders and investors should keep an eye out for them. In conclusion, there is a good opportunity for Bitcoin to possibly reach $72,500 based on liquidity distribution and technical support levels.

Despite recent price declines making the market sentiment seem bearish, the underlying liquidity indicates that a significant rally may be approaching. It is advisable to remain vigilant regarding purchasing opportunities and market indicators that may signify the start of this expected movement.

This content was originally published on U.Today

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