Bitcoin experienced significant volatility over the past week, dropping nearly 10% from a high near $70,000 to a low of $63,030 before rebounding strongly. This whipsaw action resulted in substantial liquidations and created unpredictable trading conditions. Despite a challenging long-term outlook, analysts note short-term bullish signals due to strong price defense at key support levels and an encouraging high-timeframe structure.
Bitcoin saw intense volatility over the past week of trading. The cryptocurrency formed a local top at $69,988 on Wednesday before falling by 9.94% to a local low of $63,030 on Saturday.
After reaching this low, Bitcoin immediately rallied, gaining 7.71% in under 24 hours. According to CoinGlass data, the leading crypto saw $299.72 million of liquidations in that same 24-hour period.
The wild volatility meant both long and short positions accounted for roughly equal shares of Bitcoin liquidations. The whipsaw price reactions to developments over the past few hours were hard to predict, and even harder to trade as stated by market observers.
Key developments over the past week provide reason to expect more bullishness in the short term. The first argument is the Bitcoin bulls’ defense of the $62.9k level, which represents a consolidation phase.
The second argument is the H4 price structure, where a previous lower high at $68,698 was breached during a mid-week rally. Interestingly, a retracement began to reverse from the $63k level, and the 78.6% Fibonacci retracement level was reclaimed quickly.
There is a legitimate reason for bearish short-term traders to flip to a bullish bias. The current rally was not driven wholly by a liquidation hunt, as H4 spot trading volumes reveal healthy volume behind the rally.
At the same time, late Sunday volatility remains a concern for the bulls. Monday’s New York trading session can set the tone for the rest of the week’s price action.
