Bitcoin (BTC) tapped $70,000 during Wednesday’s New York session as bulls targeted sell liquidity.
Key takeaways:
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BTC price support must hold above a key trendline at $68,000 for the rebound to continue.
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$80,000 is a key level to watch as the next big liquidation cluster above.
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Spot Bitcoin ETF inflows attracted half a billion dollars in inflows on Wednesday.
Bitcoin must close week above $68,000
Data from TradingView showed the BTC/USD pair at $68,480 on Bitstamp. This is just above the 200-week exponential moving average (EMA), which is currently at $68,338.
Related: Bitcoin tops $69.5K after stocks rebound, strong earnings data boost risk appetite
Analyst Rekt Capital spotted Bitcoin facing resistance from this trendline, saying that the latest recovery could turn into a “post-breakdown retest of the EMA into new resistance” based on historical price action.
“The moment of truth is coming for Bitcoin,” Rekt Capital said, adding:
“Bitcoin will need a Weekly Close back above the EMA and flip it into new support to go against the grain of history.”
Zooming in, fellow analyst Jelle said that the price needs to turn the 50 EMA (at $68,000) on the four-hour chart into support to confirm the recovery.
As Cointelegraph reported, the BTC/USD pair may rally to $74,508, where sellers are likely to step in, if the 20-day EMA, currently at $69,220, is broken by the bulls.
Will liquidations drive BTC price to $80,000?
Several traders are anticipating a possible liquidity grab where a cluster of ask-orders are placed above $72,000.
The latest data from monitoring resource CoinGlass showed BTC price tapping the liquidity around $70,000, with the bulk of interest still clustered above the spot price.
About $2 billion in ask orders are sitting between $72,450 and $75,000.
If the $75,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $80,000, the next major liquidity cluster.
“Bitcoin’s liquidity hunt has only just started,” analyst AlphaBTC said in his latest post on X, adding:
“Unless there is a catalyst to drop, I am expecting these higher levels to get run in the next few weeks.”
Spot Bitcoin ETF inflows support BTC’s upside
Institutional demand is showing signs of a comeback, with US-based spot Bitcoin ETFs recording inflows for two consecutive days, according to data from Farside Investors.
Investors poured a total of $765 million into these investment products on Tuesday and Wednesday, with $507 million flowing into the funds Wednesday, the largest since Feb. 2.
“ETF inflows and short liquidations doing the heavy lifting,” X user Raster said in a recent post, adding:
“This isn’t retail FOMO, it’s institutional accumulation with a technical breakout.”
This growing demand-side pressure could push BTC prices higher, particularly if combined with growing adoption and whale accumulation.
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