BTC price battles for key $69K as Bitcoin nears short liquidation zone

Bitcoin (BTC) broke above the key $69,000 at the March 25 Wall Street open as a BTC rebound gathered steam.

Bitcoin starts “TradFi” week with resistance rematch

Data from Cointelegraph Markets Pro and TradingView tracked swift gains for BTC/USD, which reached $69,463 on Bitstamp.

Up nearly 3% on the day, Bitcoin wasted no time making up for the previous week’s losses.

The top of the previous cycle bull market, $69,000 nonetheless continued to act as a psychologically important line in the sand.

“Structurally price needs to close a HH above $69K with bullish momentum,” popular trader Skew wrote in part of his latest market update on X (formerly Twitter).

Skew noted that significant buy liquidity was situated only at $60,000, while major resistance was in place above current all-time highs near $74,000.

“$74K will be a significant price area imo, both in terms of supply & psychological,” adding that “smaller spot bids” were now moving closer toward spot price.

Adopting a conservative perspective, meanwhile, Keith Alan, co-founder of trading resource Material Indicators, warned that a lack of nearby bid liquidity could easily sour the current BTC price recovery.

“Last month Bitcoin closed ~$61.1k and if bulls can close above that level this month it would be an unprecedented 7th consecutive green M close for #BTCUSDT,” he told X subscribers.

“I’m certainly not saying that it can’t happen because it absolutely can, but I’m banking, err betting, on the fact that price will at least retest support before the M close.”

Alan referred to the monthly close as a potential area of volatility, arguing that a retracement could still come despite his “fairly bullish” longer-term bias.

“With less than a week to go for the Monthly close and less than a month to go for the Halving, I’m watching to see if bids start moving up to push price to a green M close or if they continue to thin out in the range,” he wrote.

“If the latter happens, I’m focused on that concentration of bid liquidity in the $58k – $60k range which correlates perfectly with the 50-Day MA and would represent a 20% correction from the new ATH.”

BTC liquidation risk mounts

Liquidation data reinforced the stakes for those on the wrong side of the Bitcoin trade.

Related: GBTC outflows meet ‘incredible demand’ ― 5 things to know in Bitcoin this week

According to monitoring resource CoinGlass, $50 million of BTC shorts was liquidated in the 24 hours to the time of writing.

A break above $70,600, meanwhile, would tap $500 million in short leverage.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.