Crypto: Sucker's Rally? Why Bitcoin Analysts Say BTC Price Must Hold $70k

A slowdown in profit-taking and defending the 200-week EMA support at $68,000 are prerequisites for BTC to break the next big hurdle at $75,000.

Bitcoin (BTC) is up 8% on Wednesday to trade above $73,000, a level that has stopped every recovery attempt over the last three weeks. Analysts reveal why Bitcoin must hold $70,000 to secure the recovery.

Profit-taking on rallies to $70,000 must cool down for a sustained breakout in BTC price.

Bitcoin must hold support at $68,000 -$70,000 to confirm the recovery.

After a sixth straight weekly close in the red, Bitcoin has finally broken above the $64,000-$70,000 range, which has defined its price action over the last three weeks.

Glassnode highlights that Bitcoin’s struggle to break above $70,000 was due to repeated spikes in realized profit near this level, signaling heavy profit-taking.

Related: Bitcoin still due 'next leg down' as $73K BTC price precedes death cross

The chart below shows that each time the 12-hour-SMA of the net realized profit-and-loss metric spiked above $5 million per hour, the price stalled and reversed at the $69,400 range high.

This region continues to cap every recovery attempt, as seen on Feb. 19, Feb. 25, and Tuesday.

This absorbs upward momentum in a thin liquidity environment, “reflecting the fragility of the current demand structure,” the onchain data analytics company said.

Source: CoinTelegraph