Bitcoin: Why $65K is the key level BTC should focus on right now

  • Bitcoin's market structure showed that it was close to the re-accumulation zone.
  • A bounce to $65,065 could be the target for BTC once the coin recovers.

According to crypto trader Rect Capital, Bitcoin [BTC] Leaving the danger zone and reaching the containment zone again. The analyst mentioned this in a post on X (formerly Twitter) on May 11.

From the chart shared by Rect Capital, they explained how the coin has satisfied the post-halving correction, and in two days, Bitcoin may completely leave the danger zone.

the red days are almost over

To support his argument, he referred to the post-2016 cycle. At that time, three bearish engulfing candlesticks appeared within 21 days. Later, BTC rose to more than $4,250 within a few months.

On the 2024 chart, another set of red candlesticks appeared, suggesting that Bitcoin's correction may be nearing its end. At press time, the price of Bitcoin was $60,509.

Analysts suggest Bitcoin price is aiming for a surgeAnalysts suggest Bitcoin price is aiming for a surge

Source: Rect Capital/X

This was a decrease of 5.61% in the last seven days. As a result of this decline, many BTC contracts in the market expired.

Using data from Hyblock, AMBCrypto observed that there was a magnetic field around liquidation levels. This indicator shows price levels where traders are at risk of getting lost.

The magnetic field (blue) indicates a high level of liquidity and means the price may move in that direction. For Bitcoin, the price may rise to $65,065 in the short term.

This can happen only if BTC rises. Failure to reverse upside may cause further price decline. Furthermore, CLLD, which is cumulative liquidation level delta (CLLD) was negative.

Negative values ​​of CLLD indicate that shorts are beginning to experience more liquidations. If sustained, this could be bullish for the price of Bitcoin.

Bitcoin liquidation level shows a bullish signalBitcoin liquidation level shows a bullish signal

Source: Hyblock

HODLers are on the way out

We also found evidence of a potential price increase from another metric on Glassnode. The metric in question was Hodler net position change.

Hodler Net Position Change tracks the monthly net position of long-term investors. If the price is negative, it means Bitcoin holders are making profits, or cashing out their assets.

However, positive studies of Hodler net position changes indicate accumulation. By the last week of April, the metric was negative, indicating that investors were booking profits.

But this has changed since the first week of May. Specifically, long-term holders purchased 26,990 BTC on May 10. As things stand, this accumulation may continue.

read bitcoin [BTC] Price Forecast 2024-2025

Maintaining this momentum could ensure that Bitcoin trades above $60,000 in the coming days. Over the long term, this could be helpful for parabolic advancement.

Bitcoin's long-term investors are accumulatingBitcoin's long-term investors are accumulating

Source: Highblock

However, traders may need to be cautious as BTC could decline further. As Rect Capital said, the price of Bitcoin may still have two more days of decline before it starts gradually rising.

NEXT: XRP: Decoding What's next – do bulls still have a chance?

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