Bulls give up?Bitcoin bidding wall was removed, what does this mean for BTC

Bitcoin entered this week, and the price rose to the middle of the current level. However, the bulls are facing obstacles as the increase in sales pressure caused the price of BTC to fall back from $66,000 to the current price of $64,262 at the time of writing.

BTC is showing a downward trend on the 4-hour chart. source: BTCUSD transaction view

After the flash crash pushed its price from its current high to a key support level of around $62,500, Bitcoin entered the consolidation zone. With uncertainty sweeping the market, bullish sentiment seems to be fading.

Related Reading | Bitcoin is concerned about the new rebound, why is it important to close above $66,000

Many traders expect that the benchmark cryptocurrency will take more decisive price action and have a clearer path for setting a short-term price target above $70,000 and eventually reaching $100,000. Macroeconomic variables seem to run counter to the price increase of BTC.

US Federal Reserve Chairman Jerome Powell hinted at the beginning of downsizing, which may eliminate liquidity in the global market. In addition, the crisis of the Chinese real estate giant Evergrande continues to cause severe damage to the entire financial sector, with many investors flocking to the US dollar.

As shown in the chart below, the dollar index (DXY) has been on an upward trend since November 10thdayAt the same time, Bitcoin fell below $60,000, driving the entire crypto market.

The dollar index is trending upward on the 4-hour chart. source: DXY Index Trading View

In the short term, there seems to be a negative correlation between Bitcoin and DXY. If the U.S. dollar strengthens, the price of BTC may return to the key support area near $62,000.

In this case, the bulls may face further obstacles. Data from Material Indicators shows that Bitcoin has lost some support below $64,000.

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As shown in the firepower diagram below, there was a bid of 21 million USD (red lower than Bitcoin’s blue price shown) before BTC was rejected at 66,000 USD. Currently, the bid is less than 15 million U.S. dollars, and another 28 million U.S. dollars, but much lower, at 61,500 U.S. dollars.

source: Material index

This indicates that Bitcoin may continue its downward trend in the short term. There is a huge bid wall below $60,000, which was removed at $54,000, but this may mean that Bitcoin’s bullishness continues or at least there is more support near $60,000, and this area must be held to resume the rebound.

As a material indicator claim:

(…) The massive bidding ladder for BTC has dropped to $54,000. This is not a rally. As the buying zone moves up, they cannot fill that low.

What is the price target for Bitcoin in a crab-like price action?

In a higher time frame, the Bitcoin Taproot upgrade failed to become a bullish catalyst because operators have already set prices in the event. In the long run, improvements made to the BTC network will certainly become a tailwind for the price of the underlying asset.

Analyst Hasegawa Yu also said Bit BankSince the US Securities and Exchange Commission rejected the linked spot ETF submitted by investment company VanEck, the price of BTC fell.

Related Reading | Crypto analysts say that Bitcoin will not reach $100,000 this year. When will it reach?

As the stock market trended upward, prices experienced a relatively rapid recovery, but analysts expect prices to remain within the range of US$58,000 to US$69,000, and may reach a record high of about US$76,000.

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