BTC retreats from $78K peak as 'value investor' continues accumulating discounted Bitcoin
BTC continues trading within a defined range with selling pressure emerging at $77,000 while buying interest remains strong around $74,000.
Bitcoin's (BTC) period of range-bound movement extended into its fourth consecutive week, with price action discovering buying support around $74,000 while encountering selling resistance within the $78,000 to $80,000 zone. Per analysis from Hyblock, the intraday surge reaching $78,164 encountered an area where "longs that had previously opened up (that are in a position) were underwater and likely exited here at breakeven."
Hyblock further explained:
And shorts who were in profit, likely exited here at "breakeven" to prevent any loss. Hence "psychological" level.
Concerning the liquidation activity that transpired during the intraday price movement and the manner in which liquidity presently serves as a magnet for BTC's price trajectory, Hyblock pinpointed two distinct clusters. "The brightest clusters (where a lot of potential liquidity lies) and where liquidity is building up the fastest and most recently (i.e., $75,675 to $75,700.)"
Notwithstanding Bitcoin's failure to sustain price levels above $78,000, Blockstream CEO Adam Back shared information regarding a Bitcoin whale employing a time-weighted average price (TWAP) strategy to "hoover" up 450 "cheap Bitcoins" per day for the last 8.5 eight and a half days.
The chart presented below illustrates that today's price movement exemplifies the typical futures-driven selloff pattern where derivative market selling applies downward pressure on BTC's price, while spot market buyers are absorbing some portion of the selling activity. This dynamic effectively cushions the impact delivered by sellers and strengthens Bitcoin's support level at $74,000.
At present, data from orderbook depth analysis (2.5% to 5% depth) reveals sellers positioned from $77,700 onward, with ask orders becoming denser between $78,000 and $80,000, indicating Bitcoin is likely to face continued resistance throughout this price zone.
