The post Bitcoin’s potential bounce: Will $63K support lead to BTC’s rally? appeared on BitcoinEthereumNews.com.

BTC liquidation levels and pwEQ could be key for potential bounces. The 50 & 200-Day Moving Averages forming a Golden Cross. Bitcoin [BTC], the most dominant digital asset, continues to attract attention, with its price drawing significant analysis. With the current market momentum, traders are actively seeking opportunities, especially in zones with high risk-to-reward ratio. Recently, Bitcoin surged during the weekly open, creating two major long liquidation levels due to high leverage, which aligned perfectly with last week’s equilibrium (pwEQ). The pump faced resistance as the bid-ask ratio tilted heavily toward the ask side. This led to a retracement, bringing BTC back to critical levels, making these liquidation points and pwEQ key areas for potential price bounces. Source: Hyblock Capital The bid-ask ratio is now showing a shift toward demand, with more bids appearing within 2% of the current price. This indicates that entry levels around $62K to $63K could offer high returns if Bitcoin continues its upward momentum. Looking further into BTC/USD price action, the $62K to $63K zone is emerging as a crucial level. The 50-day and 200-day MAs are nearing a golden cross formation, a bullish signal indicating potential upward momentum. Source: TradingView This pattern, combined with the liquidation levels and pwEQ alignment, strengthens the argument for further gains. The last time a similar golden cross occurred was last year, which preceded a significant bullish run, hinting that a breakout could be near as bulls take control. BTC supply and momentum Additionally, analyzing short-term holder behavior reveals that weaker hands have been exiting the market. When Bitcoin’s price drops, short-term holders often panic-sell, typically locking in losses. This is reflected in an increase in purple bars on the chart, marking sell-offs during downturns. As weak hands exit, Bitcoin shifts to stronger hands, potentially stabilizing the market. The STH…

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Filed under: News - @ October 8, 2024 8:18 pm