Bitcoin Price Prediction – Breakout To $70k Imminent As Bitcoin Edges Closer To Key Resistance

Bitcoin is currently consolidating between $64,852 and $66,646. However, buying volumes are rising, indicating that buying momentum could increase. As of 08:06 UTC, Bitcoin was trading at $66,171.99, up by 0.13%. 

Bitcoin consolidation and largely directionless trading reflect its price action in past halving cycles. In the past, Bitcoin tended to get choppy around the halving period and showed a sense of indirection. This is usually due to an increase in speculative price activity around this period, which means an increase in the number of traders using high leverage. 

Over $3.4 Billion In Shorts Between $72k and $74k 

Bitcoin has taken out many overleveraged longs around the $66k price level in the last few days. However, since the dip to $65k, leveraged long positions have all but dried up. However, the number of leveraged short positions is now at record levels around $74k.

If #Bitcoin goes above $72,2400

Over $3,600,000,000 in shorts will be liquidated. pic.twitter.com/J8f1I5GfU6

— Mister Crypto (@misterrcrypto) April 4, 2024

The short positions at this price level now stand at around $3.4 billion. This means there is more liquidity for the market to capitalize on up than there is down. It is an indicator that a breakout in the price of Bitcoin from its current $64,852 – $66,646 is highly likely pretty soon. 

Institutional Demand For Bitcoin Is Getting Stronger

Despite the high liquidity that makes the case for a short squeeze at around $74k, the fundamentals paint the case for a Bitcoin breakout. One of them is that Bitcoin demand is getting stronger. Despite the choppy markets, demand for Bitcoin by institutional money is hitting record levels, as seen in the continued steady inflows into Bitcoin ETFs. Governments, too, led by El Salvador, are increasingly buying Bitcoin, adding to the demand compared to earlier years of BTC. 

Bitcoin Price Action Correlated To Past Halving Cycles

Then there is the fact that the Bitcoin halving is now around 15 days away. Historically, the Bitcoin halving has been followed by a price rally that has seen Bitcoin rally by up to 2X.  Due to the supply dynamics that follow the halving, the odds are high that Bitcoin could follow a similar pattern and easily trade at prices as high as $200k post-halving. This expectation is likely to see money flow heavily into Bitcoin in the days preceding the halving and could trigger a spike that liquidates the shorts and opens the way for a Bitcoin rally in the short term. 

Bitcoin’s choppy price action reflects how it has traded in past halving cycles. With most over-leveraged longs now liquidated and over $3 billion in shorts at around $74k, the odds are high that a short squeeze is coming that could push Bitcoin close to $80k before the halving. 

The halving is in ±15 days, #Bitcoin is chopping everyone up — and the timeline gets more bearish by the day.

Remember: choppy price action around the halving is perfectly normal.

Don’t fall for the boredom shakeout again. Be patient. pic.twitter.com/4xR40msF3q

— Jelle (@CryptoJelleNL) April 4, 2024

Bitcoin Rangebound But Buying Volumes Point To A Possible Bullish Breakout

Bitcoin is currently trading in a range between $64,852 and $66,646. However, buying volumes are rising, an indicator that the $66,646 resistance could come under pressure today. 

If bulls garner enough momentum and push Bitcoin through the $66,646 resistance, it could trigger excitement in the market, especially now that the halving is drawing closer. With billions in short positions around $74k, the odds are that such a breakout could see Bitcoin rally to $75 or higher in hours. It could also trigger a buildup in bullish sentiment and open the way for a parabolic price rally after the halving. 

However, two scenarios could play out today if bulls lose momentum in the day. The first is a continuation of the rangebound trading that has characterized Bitcoin for days. In such a scenario, such directionless trading could continue until the halving. 

The second scenario would be where short sellers take control and put the $64,852 support under pressure. If short sellers break the $64,852 support, Bitcoin could see lows of $61k in the short term before halving hype triggers another bullish rally. 

Bitcoin Price Prediction – Why A Short Squeeze Could Be Coming Soon

While Bitcoin can either consolidate or turn bearish, the odds are high that Bitcoin could see a breakout today. That’s because buying volumes are on the rise, and Bitcoin is now getting closer to the $66,646 resistance. With the high number of shorts at $74k, a push through $6,646 could easily see Bitcoin rally to $75k or higher and squeeze out the shorts.