Bitcoin (BTC) has been trading within a range of $60,000 to $73,000, despite challenging macroeconomic conditions, including a surge in Brent crude oil prices and a tumultuous stock market marked by a 3.95% year-to-date loss in the S&P 500 index. Buyers have demonstrated a consistent interest in purchasing Bitcoin during price drops to the $60,000 level, which currently serves as support, though the risk of further declines persists.
Technical analysis reveals a bearish continuation pattern on Bitcoin’s 1-day chart, with a notable correction to $60,014 observed on January 20. Aksel Kibar, a chartered market technician, warns that a breakdown below this support could trigger a significant drop to $52,500. Furthermore, market sentiment appears cautious, with Bitcoin’s aggregated open interest remaining below $20 billion, the lowest since early February when BTC was valued near $79,000.
With traders maintaining a wait-and-see approach, particularly when faced with resistance at the bear flag’s trendline, there is a notable liquidity gap if Bitcoin falls to the $63,000 to $65,000 range, which could lead to a surge in liquidations of leveraged long positions.