The Bitcoin Weekly Analysis

The Bitcoin weekly session closed well below $92k, indicating a bearish trend. The liquidation heatmap pointed to a key bearish target that could signify the bottom of the downtrend.

Bitcoin (BTC) experienced a significant drop on the price charts. The $92k level, previously the low of the trading range from late November to late February, was retested as resistance.

Last weekend, the bulls were unable to regain momentum, affirming a bearish trend.

Evidence of distribution among long-term holders emerged after breaching the $60k level, although this distribution’s intensity has decreased, as noted by analyst Axel Adler. The concern now is whether this will prevent Bitcoin from dropping to $70k.

Momentum and Volume Indicate Further Downside

The weekly session concluded at $80.7k, just above the 50% retracement level of $79.3k. The significant losses following multiple retests of the $92k support from December to February suggest bullish exhaustion.

Looking downward, the $72k area has emerged as the next target, with both the MACD and OBV indicating strong bearish pressure.

A potential bounce to collect liquidity around $87k could occur; however, any subsequent gains appear unlikely. If such a bounce materializes, it would likely be followed by a price drop towards the $70k level.

Fibonacci levels plotted from $49k to $109.6k (from August to January) indicate that the price currently hovers just above the 50% retracement level, suggesting a possible short-term price bounce.

The 3-month liquidation heatmap reveals that the nearest crucial zones lie at $100k and $72k. Notably, the liquidity cluster starting at $76.8k makes the $72k-$76k region a potential candidate for a bullish reversal.

In the meantime, swing traders should maintain a bearish outlook as market sentiment remains strongly bearish. Investors should watch Bitcoin’s reaction at $72k to decide if a shift towards a bullish bias is warranted.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and reflects only the author’s opinion.