A prominent cryptocurrency trader has shared insights on the social media platform X, forecasting that Bitcoin’s price may decline further, possibly reaching the $63,000 mark. This analysis stems from observations of liquidity dynamics that have influenced the flagship cryptocurrency’s value in recent weeks.
In a recent post, the trader known as KillaXBT outlined potential price trajectories for Bitcoin based on its current technical structure, highlighting various support and resistance levels present within the weekly timeframe. KillaXBT noted that recent market activity has seen multiple sweeps above external highs and below internal lows. Notably, this trend began approximately four weeks ago when Bitcoin experienced a sweep of external range highs, leading to a rapid price reversal and a bearish close for that week.
The analyst indicated that this movement necessitated a reevaluation of Bitcoin’s value, which briefly pushed the price back towards $71,500. This price action appeared to target late short positions before the market reverted to a bearish trend once again—a layout that KillaXBT described as a typical liquidity hunt preceding reversals. The bearish close from the previous week set the stage for another significant event: another liquidity sweep occurred this week, followed by a rejection of Bitcoin’s price.
Given that most of Bitcoin’s recovery has been fueled by leveraged positions and a prevailing bearish market structure, KillaXBT stated that the buying pressure might be nearing exhaustion. Consequently, the lows around $64,900 could soon be tested for another liquidity sweep. In the medium term, the analyst anticipates that Bitcoin may breach the external range lows at $63,000, aligning with expectations of a subsequent upward reversal towards $72,800, where additional selling pressure may manifest.
Further reinforcing the bearish sentiment, on-chain analyst Joao Wedson noted a significant behavioral shift among short-term Bitcoin holders, indicated by the Short-term Holder Net Position Change metric. These investors—who typically hold Bitcoin for less than 155 days—are increasingly selling off their assets, which is often a reaction to abrupt price changes, unlike the more seasoned market participants. This impulsive selling indicates a developing bearish sentiment among newer investors, which can contribute to downward pressure on Bitcoin’s price.
As of now, Bitcoin is trading around $67,256, marking a slight growth of 0.5% in the last day. However, the prevailing indicators suggest that the cryptocurrency could very well be on track toward the $63,000 level in the near term, at least before any significant attempts at recovery might occur.
