Bitcoin hits $71.5K+ local high as analyst sees bears 'stepping in' soon

Bitcoin copied a relief rally in stocks, but concerns focus on downside liquidity and looming 50-day moving average resistance.

Bitcoin (BTC) found fresh strength at Tuesday’s Wall Street open as bulls eyed a revisit of local highs.

Bitcoin attempts to push toward the top of its local range, hitting new week-to-date highs.

Liquidity conditions spark warnings of a fresh trip lower.

The 50-day moving average above $73,500 is a point of concern for BTC/USD going forward.

Data from TradingView showed 4.5% daily BTC price gains, with BTC/USD passing $71,500 for the first time since the weekly open.

Geopolitical tensions around the Middle East conflict and global oil supply remained, but both Asia and US stocks were confident, with the S&P 500 and Nasdaq Composite Index up by around 0.5%.

“From the looks of it, the market is about to tell us where it wants to go next,” trader Jelle wrote in his latest BTC price analysis on X.

Crypto trader, analyst, and entrepreneur Michaël van de Poppe saw benefits for Bitcoin on the back of a “strong surge” in the Nasdaq.

“Yesterday, deep wick into the lows given the sudden rise on Oil (which was mostly liquidity and derivatives driven). Now, bouncing back and I think we'll start to run towards new highs as the uncertainty in the Middle-East starts to lower,” he told X followers.

Crypto liquidations stayed elevated as markets fluctuated, with monitoring resource CoinGlass putting total 24-hour liquidations at over $350 million.

Commenting on the data, CryptoReviewing, the pseudonymous cofounder of trading community Wealth Capital, nonetheless agreed that Bitcoin could drop to take long liquidity at $68,000 next.

“$68,000 is the level to watch. The single largest liquidation cluster sits at $68k, making a sweep of this level possible,” an X post on the day stated.

A separate BTC price resistance hurdle on the radar came in the form of the 50-day simple moving average (SMA) at $73,640.

Related: Bitcoin braces for oil shock and death crosses: 5 things to know this week

In his latest YouTube video, independent analyst Filbfilb suggested that Bitcoin’s price would continue to lack the necessary momentum to reclaim the trend line as support.

“I think if we see a close above the 50, taking out the previous high and open interest keep going up, people keep shorting, the likelihood is that we’re going to continue,” he said.

Trading resource Material Indicators, meanwhile, had a lower ceiling in mind, citing signals from several of its proprietary trading tools.

MTF Mean Reversion, Trend Precognition, and Timescape Levels are all indicating that $BTC is finding a local top around the Q1 2024 Timescape at $71.3k.El T.A.C.O. could invalidate all of that by de-escalating the so called "excursion" to Iran, or escorting oil tankers out of… pic.twitter.com/hp0LQVf5Un

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Source: CoinTelegraph