Bitcoin underwent a sharp price swing, first rising to $57,000 and then dropping below $55,000 after the release of the US jobs report, causing volatility in the crypto market. This sudden price swing led to almost $50 million in liquidations within an hour. Major altcoins such as Ethereum, Solana, Ripple’s XRP and Cardano also saw losses of 3% to 5%.
Bitcoin recently dipped below the support zone between $56,000 and $57,000 and is currently testing levels like $54,000. According to analyst Josh from Crypto World, the price is likely to consolidate around the support zone of $55,000 to $57,000 before making a decisive move. If the support holds, Bitcoin may see a relief push towards higher resistance levels, but breaking above them will be challenging without stronger bullish momentum.
Even if Bitcoin experiences a short-term rally, it faces strong resistance at several levels including $59,500, the $60,000 to $61,000 range, $62,900, and finally a huge resistance around $64,500. If the price fails to break these levels, it could get rejected and resume the downtrend.
Should Bitcoin decline below the critical support of $56,000, the next major support level would be around $54,000. However, at the time of writing, Bitcoin is trading at $54,000 levels and it seems that it will soon lose this critical level.
He looked at the Bitcoin liquidation heat map and explained that the recent price action has been choppy, with the market moving sideways. There is liquidity building up around $55,000, which could influence the price movement. However, the most critical area of liquidity is between $59,800 and $60,000, which marks a key zone of interest for traders.
