23 Apr

The range for Bitcoin [BTC] was $73k–$60.7k. At $66.9k, this range's midpoint was located.

As at the time of publication, there had been a strong rally in Bitcoin, but the New York Open on Monday, April 22, had not yet happened.

Crypto researcher CrypNuevo stated on X (formerly Twitter) on Sunday that he anticipated a climb to $66k to start.

The criteria for a move above $66k

A cluster of liquidation levels at the $66k level was visible in the 7-day look-back period liquidation heatmap, as noted by CrypNuevo.

Additionally, this level is less than 1% below the previously mentioned range formation's mid-range level.

This was a favorable area for a bearish price reversal. Prices may rise beyond $66k at the start of the New York session and gather liquidity there.

In order to eliminate the enthusiastic bulls holding out for a move above the $65k–$66k short-term resistance zone, it would probably follow up by diving lower.

Should the price continue to rise above $66k, this bearish reversal would be invalidated. A decline to $64.5k would suggest that $63k was the next objective.

The long bets considerably outnumbered the short positions, according to the liquidation levels. This suggested that a decline was advantageous. There was a strong concentration of large short liquidations in the $66.8k region.

There were also a number of lengthy liquidation levels in the $62.8k range. As a result, if it falls below $64.5k, it will probably fall to $62.8k.

Combining the range formation with technical indicators

According to CrypNuevo, prices often go to the other extreme of the range when they deviate from the range lows.

One such exception occurred on April 17th, when prices dropped to $59.8k. The direction has changed since then.

The 4-hour chart's RSI indicated bullish momentum as well. However, the OBV was unable to overcome the degree of local resistance. This suggested that there wasn't much buying activity last week.

The liquidity pockets at $73.2k and $56k are in line with the range highs and lows. As a result, these are the more interesting time periods.

After the selling pressure that accompanied the halving, it is anticipated that Bitcoin would stabilize within these levels for a few weeks before building strength for its breakout.

April 2024, Cryptoniteuae

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