Bitcoin (BTC) continues to struggle against resistance at the $70,000 mark, printing lower highs on the daily chart since its all-time highs in March. Data from TradingView indicates that the area around $70,000 has been a significant barrier, limiting the July rebound.
Persistent Seller Control
Bitcoin bulls have been keen on challenging the March all-time high of $73,800. However, sellers have consistently thwarted these attempts, maintaining control and sending BTC/USD back into its five-month trading range. This repeated pattern suggests substantial liquidity above $70,000, with traders noting the build-up of stop losses and liquidation levels from short positions.
BTC/USD 1-hour chart. Source: TradingView
Trader Insights
Popular trader Daan Crypto Trades highlighted the significance of the $70,000 level, suggesting that a lot of liquidity lies above this mark. He pointed out that $72,000 is now the critical level for bulls to overcome. Meanwhile, other traders see buy liquidity below the spot price, indicating a potential downward movement to $64,000.
BTC/USD chart. Source: Daan Crypto Trades/X
Similarly, analyst Josh Rager has observed the lower high cycle and remains cautious about trading until a firm breakout occurs. He emphasised the need for a daily close above the current resistance to regain interest in trading BTC.
Market Depth and Future Trends
Some traders, such as the pseudonymous Horse, have expressed scepticism about the recent spike to $70,000. They argue that a lack of genuine spot buyer interest raises questions about the sustainability of the move. Horse noted that while open interest (OI) has increased, it has not been accompanied by significant price action, suggesting that the current market depth is unfavourable.
BTC/USD chart. Source: Josh Rager/X
Horse also mentioned that market depth shifts unfavourably across the board but acknowledged that this alone is non-actionable. Despite these concerns, the long-term outlook for crypto remains bullish, with the expectation that the upward trend might be more gradual and gritty before significant gains are realised.
In conclusion, Bitcoin’s battle with the $70,000 resistance continues, with bears maintaining control and traders eyeing liquidity levels for potential movements. The current market setup calls for caution, with significant breakouts required to inspire renewed trading interest.
