Bitcoin (BTC) Touches $64K as Market Maintains Consolidation Phase - Crypto Economy

TL;DR:

• BTC price retraced to $64,111, liquidating approximately $240 million in long positions.
• Derivatives data shows liquidity asymmetry, with $3.5 billion vulnerable on the upside.
• Technical indicators like Bollinger Bands suggest an imminent expansion in volatility.

The crypto market began the week with high tension as the pioneer cryptocurrency retraced to weekly lows. Despite this momentary weakness, the technical structure indicates that Bitcoin maintains consolidation phase within a three-week range situated between $65,000 and $71,000.

This correction effectively swept liquidity near $64,000, eliminating excess leverage in long positions. However, analysts observe that the price continues to rotate tightly, building pressure for an expansive move due to volatility compression.

Furthermore, funding rates on four-hour charts have turned red, indicating defensive positioning by traders. This scenario is ideal for a “short squeeze,” especially considering that there are over $3.5 billion in short positions that could be liquidated if the price retests $70,000.


Liquidity Magnets and Technical Recovery Projections

Currently, there are two critical points of interest for derivatives traders: $63,000 on the downside and $70,000 on the upside. While a brief dip toward $63,000 could clear remaining liquidity, the volume concentrated at the top of the range acts as a more powerful magnet for the price.

Experts such as Christopher Inks point to the formation of a bullish divergence on the daily RSI, coupled with an increase in trading volume. These factors reinforce the thesis that once the sweep of the lows is complete, the asset will seek to reclaim higher levels to challenge historical resistance.

In summary, although Bitcoin maintains consolidation phase, indicators suggest that the sideways stage is nearing its end. The ability of buyers to defend the order block at $63,000 will be decisive in initiating the path toward new yearly highs.