Bitcoin was valued at around $ 64,000 at press time. So close to your ATH it seems almost pointless to project possible corrections. However, while the majority of the community expects a peak of $ 70,000 in the next few days, the odds of a correction are strangely still intact.

Without committing the cardinal sin of rebelling against Bitcoin’s rally, there are a few factors that have historically played a role in BTC’s trend direction. And it pays to keep them in mind in the current market situation.

Will Bitcoin Follow Liquidity Pools Again?

Source: jarvslabs

Although Bitcoin is hovering around its all-time high, it’s important to note that there is more liquidity below the $ 62,000 price tag. In the past, we have found Bitcoin to follow these pools of liquidity as the asset tends to follow capital during times of high price fluctuations.

With more liquidity below the $ 62,000 price range at the moment, the price may approach these levels over time as traders try to add more margin or liquidate their positions.

As the price moves sideways, these pools may become more important in the future.

Supply-demand strongly favors BTC

Source: jarvslabs

This is where the narrative of the no man’s land for Bitcoin comes into play. According to data, the 24-hour HODL rate for Bitcoin has risen alongside its rising price. If the price is trending up and the 24-hour HODL rate jumps, it is an indication of a continued increase in demand from spot buying.

This is where Bitcoin’s price movement becomes more difficult as the MVRV has proposed the possibility of profit-taking for investors.

In our previous articles, we mentioned that a higher MVRV opens the tale of traders taking some profits. However, as of press time, there was no sign of excessive selling pressure.

When, how and where?

Source: trade view

From a purely structural market point of view, there is currently no bullish divergence for Bitcoin. However, there is a slight bearish divergence on the 12-hour chart.

With the Relative Strength Index, or RSI, on the chart subsiding and the price appearing to rise, a retreat to $ 60,000 is not beyond immediate occurrence.

Therefore, the price of Bitcoin can still be subject to corrections regardless of its high trading range.

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