At the time of publication, Bitcoin was worth about $64,000. It is nearly useless to forecast probable adjustments thus close to its ATH. While the bulk of the community is anticipating a $70k peak in the next few days, the possibility of a correction is oddly still present.
A few elements have influenced Bitcoin’s trend direction in the past without committing the cardinal sin of revolting against the rise. Nevertheless, it’s also important to remember them in light of the present market scenario.
Will Bitcoin once again follow the liquidity pools?
Even though Bitcoin is fluctuating around its all-time high range, it is crucial to remember greater liquidity below the $62,000 price barrier. We’ve already found that Bitcoin follows these liquidity pools since the asset tends to follow the capital during moments of strong price activity.
Because there is greater liquidity beneath the $62,000 price range right now, the price may hit these levels in the future as traders attempt to add a margin or liquidate their positions.
These pools may become increasingly significant in the future as the market moves sideways.
BTC has a strong supply-demand advantage
This is where the story of Bitcoin’s “no man’s land” enters the picture. According to statistics, the 24-hour HODL rate for Bitcoin has been increasing in tandem with its growing price. Therefore, if the price rises and the 24-hour HODL rate increases, it indicates a persistent increase in spot purchasing demand.
Since the MVRV highlighted the prospect of profit-taking for investors, this is where Bitcoin‘s price movement becomes tougher.
In earlier articles, we discussed how a higher MVRV opens up the possibility of traders collecting gains. However, there was no indication of significant selling pressure at the time of publication.
When, how, and where are you going to do it?
From a purely market structural standpoint, there is now no positive divergence for Bitcoin. On the 12-hour chart, however, a weak bearish divergence may be seen.
With the Relative Strength Index (RSI) on the chart tapering off and the price looking to climb, a retreat down below $60,000 is not out of the question.
As a result, despite its wide trading range, Bitcoin‘s price may still be subject to corrections.