Bitcoin price: why $71.5K is critical for a rally
In the past seven days, Bitcoin [BTC] has seen an impressive upswing, with its value increasing by roughly 12.8%.
This boost in price is largely attributed to the growing anticipation of an Ethereum [ETH] spot ETF and the newfound acceptance of Bitcoin by Donald Trump for campaign contributions.
However, the digital currency has faced a minor setback in the last day, dropping by 1.8% from a day's high of $71,422 to a current value of $69,823.
Despite this recent decline, the market's overarching momentum leans towards the positive, though a temporary market retracement is observable.
Bitcoin: Critical Points to Monitor
In the midst of these market fluctuations, cryptocurrency expert Rekt Capital shares his analysis on Bitcoin's market behavior, adopting a wary stance.
He predicts that Bitcoin might remain in its present pricing band for a few more weeks, a conclusion drawn from analyzing past trends.
An important mark to observe is approximately $71,500; surpassing this level with a weekly candle close may trigger a significant upward movement beyond Bitcoin's current Re-Accumulation Phase.
Rekt Capital points out that this sustained period of consolidation could indeed mirror Bitcoin's past cycles associated with halving events, potentially extending the duration of the bull market.
The ongoing cycle's acceleration, now at about 190 days, marks a quicker pace compared to the 260-day span noted in mid-March, during which Bitcoin reached new zeniths. The analyst remarked,
"Historical trends hint at a protracted bull market, yet Bitcoin is just one Weekly Close above the $71,500 Range High from defying historical precedents once more."
This situation could pave the way for Bitcoin to chart new territory, setting a fresh all-time high (ATH).
Encouraging a bullish sentiment further, insights from CryptoQuant, as showcased by CEO Ki Young Ju, reveal a reluctance among Bitcoin investors to part with their holdings, even as the price edges close to $70,000.
This tendency underlines the perception of Bitcoin as a viable store of value.
Ki Young Ju's analysis of the Holding Intensity ratio underscores that the current holding patterns in the Bitcoin market are akin to scenarios where Bitcoin remains undistributed, solidifying its role as a dependable long-term asset.
Market Analysis and Future Predictions
AMBCrypto's review of Bitcoin's 30-minute transaction chart indicates a recent test of a crucial demand zone without a subsequent upturn.
While hitting a demand zone often leads to upward momentum, Bitcoin's failure to uphold this area could result in a decline to the $66,000 territory before any resurgence.
Furthermore, AMBCrypto's study of liquidation trends suggests the existence of considerable liquidity beyond the $73,300 mark.
This observation hints that Bitcoin could not only breach its previous peak but could aim for $76,900 as the forthcoming high.
Liquidation heatmaps play an essential role for traders by pinpointing zones of high liquidity, which in turn, signal potential pivotal price movements.
