Key Points
- Bitcoin (BTC) surged past the significant $69,000 mark on March 25.
- Despite the rise, some traders warn of potential volatility and retracement.
Bitcoin’s value soared past the crucial $69,000 threshold at the start of the traditional financial week, indicating a strong recovery for the cryptocurrency.
Bitcoin’s Swift Gains
Data demonstrates a rapid increase for BTC/USD, peaking at $69,463 on Bitstamp. With an almost 3% rise on the day, Bitcoin quickly compensated for the losses of the previous week.
Despite its status as the peak of the previous bull market cycle, the $69,000 mark still serves as a significant psychological barrier.
Popular trader, Skew, highlighted that substantial buy liquidity was located at $60,000, while significant resistance lay above the current record highs near $74,000. He suggested that “$74K will be a significant price area imo, both in terms of supply & psychological,” and noted that “smaller spot bids” were gradually moving closer to the spot price.
Potential Volatility Ahead
Meanwhile, Keith Alan, co-founder of trading resource Material Indicators, cautioned that a lack of nearby bid liquidity could jeopardize the current BTC price recovery.
Alan pointed to the monthly close as a potential volatility hotspot, arguing that a retracement could still occur despite his longer-term bullish bias. He emphasized the concentration of bid liquidity in the $58k – $60k range, which aligns perfectly with the 50-Day MA and would represent a 20% correction from the new ATH.
Data on liquidation underscored the risks for those on the wrong side of the Bitcoin trade. Monitoring resource CoinGlass reported that $50 million of BTC shorts were liquidated in the 24 hours leading up to the time of writing. A break above $70,600 would tap $500 million in short leverage.
