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BTC Pause at Highs

As expected, we’re seeing plenty of volatility around the former all time-highs in Bitcoin. BTC futures surged to fresh record highs of $70195 yesterday, just topping the prior highs of $69355 before sharply reversing lower. Futures prices plunged more than 13% on the day before bottoming out and today, trading back up to around $67215, as of writing.
 

Record Liquidations

The losses can likely be attributed to profit-taking as price tested all-time highs. Many traders will have set the level as a target on any longs entered in recent months along with speculators likely attempting to scalp a reaction lower from the first test of the level. The key question is where do we go from here? BTC is currently holding just below the $60355 level keeping focus on further upside for now, in line with bullish momentum studies readings and the overall bull trend.

Data from CoinGlass showed that the drop lower yesterday triggered more than $1 billion in BTC liquidations from leveraged derivatives positions entered. The losses yesterday topped the prior liquidation record set last August when roughly $1 billion worth of liquidations triggered.
 

Bullish Outlook Holds

Despite the price action yesterday, longer-term players and big names are remaining bullish on Bitcoin. Order book clear-outs are a necessary part of maintaining a bull move and on the back of the heavy rally we’ve seen so far this year, some consolidation and correction is to be expected. Looking ahead, focus remains on higher prices while we hold above the $47550 level. Plenty of volatility risk in the coming days with Powell’s testimony and US jobs data due.
 

Technical Views

BTC

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The rally in BTC has stalled for now into a test of the 69355 level and former all-time highs. While below here, some consolidation is likely with 64540 and 59755 the near-term supports to watch. The deeper and more pivotal level is the 47550 mark. While the market holds above here, the broader outlook remains bullish. 

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