Bitcoin (BTC) Registered Its Highest Jump in the Past Two Weeks at $71,000, Falling Just Short of Its All-Time High

Analysts predict that reaching the critical $72,000 mark could act as a fuse, igniting mass liquidations and setting new records.

Bitcoin (BTC) price action registered its highest jump in the past two weeks on Monday, coming closer to its all-time high as it approached the $71,000 mark. However, a closer look at the price chart reveals critical resistance levels that could determine Bitcoin’s next move.

Analysis from crypto on-chain observer Willy Woo suggests that BTC fiyatı reaching the $72,000 level could trigger mass liquidations, setting a new record high.

Bitcoin Price Poised for a Critical Breakout as Key Resistance Nears

After a period of consolidation, Bitcoin price began a new leg up on Monday. The world’s largest cryptocurrency surged past the $70,000 resistance level, sparking optimism among traders.

However, as Bitcoin approached the $71,000 price point, the momentum slowed, and the price faced resistance at the 200-day moving average (200DMA). This technical indicator has acted as both support and resistance in the past.

A breakout above the 200DMA would be a bullish signal, indicating that Bitcoin is روندبازگشتی from its recent downtrend and setting a higher low. Conversely, a failure to break through this resistance could lead to a pullback or consolidation.

Bitcoin Liquidations Mount, Poised for Mass Squeeze as Price Nears $72K

Further analysis from crypto on-chain observer Willy Woo on Monday highlighted the potential for large-scale liquidations as Bitcoin approaches the critical $72,000 resistance level.

According to Woo’s analysis, if BTC price manages to break through this resistance, it could trigger the liquidation of up to $1.5 billion in short positions, based on the Bitcoin Liquidation Heatmap.

This mass liquidation would be a significant event and could propel Bitcoin price even higher, as it would remove a substantial amount of selling pressure from the market.

“Tapping $72k is the fuse set to start a liquidation cascade. $1.5b of short positions ready to be liquidated all the way up to $75k and a new all-time high,” Woo stated.

Moreover, a potential move above $72,500 would trigger the liquidation of over $1.2 billion in leveraged short positions, according to data from CoinGlass.

Bitcoin Price Analysis: Key Resistance Levels, Technical Indicators

Trader Rekt Capital’s analysis adds perspective to the technical price analysis. According to the trader, Bitcoin broke out of a two-week downtrend. While BTC spiked past the $70,000 resistance level, it needs to close above resistance for the breakout to be confirmed.

Based on historical patterns, Bitcoin may consolidate between $68,000 and $71,500 before the next phase of an upward parabolic movement. This anticipated consolidation aligns with Woo’s prediction that hitting the $72,000 level would trigger substantial liquidations, paving the way for new all-time highs.

Currently, Bitcoin is trading at $70,765, with a 24-hour trading volume of $37.6 billion. Despite recent volatility, Bitcoin has surged by 2.85% in the past 24 hours, indicating a significant recovery.

Technical indicators paint a bullish picture for Bitcoin. The Relative Strength Index (RSI) sits at 62, indicating strong buying pressure. At the same time, the positive MACD level at 1182 suggests upward momentum.

However, a contrasting signal emerges from the TD Sequential, which has flashed a sell signal on the hourly chart, hinting at a potential short-term price correction.