Bitcoin on the Cusp of Surpassing $70,000 as Traders Eye Critical Resistance Levels

Bitcoin may be gearing up to move above $70,000 now it has reclaimed a critical level that traders have been closely watching for the past two months. Rebounding from the $65,000 price point on Tuesday, Bitcoin is trending towards the $71,500 mark, based on historical patterns observed by crypto traders. Rekt Capital, a pseudonymous crypto trader, highlighted in a recent post that breaking $65,000 would likely pave the way for Bitcoin to enter the $65,000-$71,500 range, a level that has been reached four times this year. Currently, Bitcoin is trading at $65,846, according to CoinMarketCap data.

Despite the upward momentum, a significant amount of short positions are at risk of being liquidated at $71,500. CoinGlass data shows that approximately $1.47 billion in short positions would be wiped out at that level. However, recent days have seen a resurgence in confidence among future traders, with Open Interest (OI) spiking by 13% over the past five days. The increase in OI reflects traders’ growing interest in Bitcoin’s near-term price movements.

Looking ahead, some pseudonymous crypto traders, including Mags and Yoddha, have shared their insights on Bitcoin’s potential trajectory. Mags noted that Bitcoin’s recent price decline could signal a repeat of historical patterns seen in previous years, potentially pushing the price above $70,000. Yoddha, on the other hand, highlighted that the sharp decline was likely a “fakeout” to trap panic sellers. As Bitcoin continues its price journey, traders are keeping a close eye on key levels and market dynamics to make informed decisions.