The post Bitcoin Price Falls 3%: Analyzing BTC’s Next Potential Moves Amid Dominance and Liquidity Clues appeared on BitcoinEthereumNews.com.

Bitcoin confronted a notable decline as it dropped nearly 3% after peaking at a local high of $69.4k. Insightful metrics from the Bitcoin dominance and liquidity charts provide valuable hints regarding its potential next move. An earlier analysis flagged the $69k zone as a significant resistance area, where the liquidity pool could attract prices before a probable bearish turn. Explore the latest developments in Bitcoin’s price dynamics and key market factors influencing its movements. Bitcoin’s Bearish Turn After Touching $69.4k: What’s Next? Recent trading activities saw Bitcoin [BTC] nearly touching the $69k mark, a crucial level of resistance. Within 24 hours, BTC reached $69.4k but shortly declined by 2.7% to settle at around $67.5k. As the week began, metrics indicated a bearish trend in the short term, suggesting Monday’s trading could be instrumental in determining the weekly trend. Analyzing the Liquidity Heatmap for Bitcoin’s Potential Movements According to an in-depth analysis by COINOTAG, the 7-day liquidation heatmap presents clusters of liquidation levels at the $70k and $66.4k marks. The pullback from $69k recently contributed to the liquidity pool surrounding the $70k zone, which poses an intriguing price target for the start of the week. This could lead to an initial rise towards $70k, stirring bullish sentiment before potentially reversing towards $66.4k. Observing whether Bitcoin exceeds these levels may offer cues about the short-term market direction, indicating possible bullish or bearish outcomes for the week. The Role of Bitcoin Dominance in Market Analysis The Bitcoin Dominance chart (BTC.D) recently exhibited a breakout above previous range highs, signifying Bitcoin’s superior performance relative to major altcoins. In scenarios where the broader market faces declines, altcoins are likely to experience amplified losses compared to Bitcoin. This dominance information is crucial for traders, as it assists in formulating trading strategies based on emerging market conditions.…

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Filed under: News - @ July 29, 2024 3:14 am