Bitcoin Price Poised for Major Breakout or Correction: $74K Next ?

Key Takeaways:

• Critical Resistance Level: Bitcoin price needs to close above $69,330 to confirm a breakout towards $74,400.
• Asymmetrical Triangle: This pattern indicates a potential significant Bitcoin price movement, depending on the breakout direction.
• TD Sequential Indicator: Flashed a sell signal, suggesting a possible decline to $68,050 if support fails for Bitcoin price.
• Coin Days Destroyed (CDD): The current low CDD indicates reduced selling pressure from long-term holders, supporting a bullish outlook.
• Liquidity Heatmap: High liquidity at $70,300 suggests a possible Bitcoin price rise, with further potential to reach $74,500.

Bitcoin price trajectory is currently showing mixed signals, presenting two divergent possibilities: a significant upward surge or a notable decline. Recent technical analysis highlights that Bitcoin has formed an asymmetrical triangle on the 4-hour chart, indicating a potential breakout. However, the crucial determinant for this breakout is whether Bitcoin can close above the $69,330 resistance level.

BTC/USD | Source: TradingView

An asymmetrical triangle pattern, characterized by converging trendlines with opposing slopes, is often a precursor to a breakout. According to analyst Ali Martinez, Bitcoin price could skyrocket to $74,400 if it manages to close above the upper resistance level of $69,330. At the time of writing, Bitcoin was trading at $69,031, tantalizingly close to this critical resistance point. Should Bitcoin breach this level, it would likely trigger a strong bullish run.

Conversely, Martinez also pointed out the possibility of a downturn based on the Tom DeMark (TD) Sequential indicator. This indicator recently flashed a sell signal, suggesting that Bitcoin price could plummet to $68,050 if the price falls into the support zone instead. This dichotomy underscores the importance of the $69,330 resistance level as a pivotal threshold for Bitcoin price’s next major move.

Read On: Bitcoin Price Prediction

On-Chain Metrics: Coin Days Destroyed (CDD)

Beyond technical patterns, on-chain metrics provide additional insights into potential Bitcoin price action. One such metric is Coin Days Destroyed (CDD), which measures the movement of long-held coins. A high CDD indicates significant selling pressure, which can lead to price volatility. On May 28, Bitcoin experienced heightened volatility with a high CDD. However, current data shows a drop in CDD to 4.55 million, implying that long-term holders are not moving their coins and are maintaining their positions. This trend could support a bullish scenario if it persists.

Analyzing the liquidity heatmap offers further clarity on Bitcoin price movements. The heatmap helps identify areas with high liquidity, which can act as price magnets. Currently, there is a significant liquidity level a $70,300, suggesting that Bitcoin might reach this price point. If this level is attained, it could catalyze a further breakout towards $74,500, where another high-liquidity zone exists. However, should the upward momentum be thwarted, Bitcoin price could face a decline towards $65,050.

Market Sentiment and Future Predictions

Given the mixed signals from both technical and on-chain analyses, Bitcoin price’s next significant move remains uncertain but highly dependent on its ability to close above the key resistance level. The current market sentiment leans slightly bullish, with a possible upward trend towards $74,000 if the resistance is breached. Nonetheless, traders should remain vigilant, as failure to sustain above this level could result in a downturn.

In conclusion, Bitcoin price’s immediate future hinges on its performance relative to the $69,330 resistance level. Breaking above this threshold could propel Bitcoin to new heights around $74,400, while a failure to do so might see it revisiting lower support levels near $68,050 or even $65,050. As always, traders should stay informed and prepared for both scenarios, leveraging insights from both technical and on-chain data to navigate the volatile crypto market.

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Source: AMBCrypto