Bitcoin (BTC) had a negative past week regarding its price action. With a retrace starting on October 7, after a previous consolidation week that followed an uptrend since September 11. In the past seven days, BTC lost around 4% of its market value, until the time of publication.
Nevertheless, analysts have pointed toward technical analysis (TA), crypto market psychology, and Bitcoin fundamentals in anticipation of what could be a positive performance in the following weeks. Notably, Ferrari announced on October 13 that it will start accepting BTC and other cryptocurrencies as payments in the U.S.
Particularly, as a TA indicator, the 4-hour Relative Strength Index (RSI) shows an oversold state for Bitcoin, which could signal a ‘buy’ opportunity for the leading cryptocurrency, as reported by Finbold mid-week.
In this same report, CrypNuevo had predicted BTC at sub $27,000 before it could chase higher grounds, due to massive liquidity pools that are usually targeted by market makers, considering crypto trading behavior psychology. Liquidity has now changed, pointing upwards.
Bitcoin liquidation heatmap suggests BTC can reach $28,200 next week
Notably, data retrieved by Finbold from CoinGlass on October 14 shows that there are over $328 million in awaiting liquidations to happen at the $28,200 price per BTC, on Binance Bitcoin futures contracts. This could act as a magnet in the following weeks, as happened in the past.
A similar pattern of higher liquidations on higher prices can also be seen in other cryptocurrency exchanges, although Binance holds the highest volume.
However, despite having larger liquidity pools upwards, there are still meaningful liquidations downwards, which could also support a bearish case for Bitcoin in the next week. This bias is also defended by Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, who says “Bitcoin may lead great reset by going down”.
BTC price analysis
Meanwhile, Bitcoin is trading at $26,852 by press time. A similar but higher price to what was observed one month ago, at $26,418 per BTC on September 14.
All things considered, it is impossible to be sure whether Bitcoin will ‘go up’ or ‘go down’ in the following weeks, but there are stronger incentives pointing to higher prices at this point. Nevertheless, traders and investors must manage their risks in order to achieve better results, and continue to follow developments, indicators, news, and macroeconomics to understand what to expect from BTC in the future.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.