Bitcoin’s Price May Dip to $63,000, Analyst Warns
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A well-known cryptocurrency trader recently shared insights on the platform X, suggesting that Bitcoin’s price could potentially decline to around $63,000 soon. This assessment is grounded in the liquidity changes that have influenced the price of the leading cryptocurrency in recent weeks.
KillaXBT, the trader in question, outlined possible future price movements for Bitcoin in a post dated April 4th. The forecast is derived from an analysis of Bitcoin’s current technical landscape, which displays a range of support and resistance levels on the weekly chart.
This analyst noted that fluctuations in price over the past few weeks have led to numerous sweeps of both highs and lows. Specifically, this trend appears to have initiated approximately four weeks ago, when Bitcoin experienced a sweep of external highs, resulting in a rapid price reversal that culminated in a bearish weekly close.
KillaXBT indicated that due to this market activity, Bitcoin was compelled to find new equilibrium, resulting in its weekly candle returning towards $71,500. This movement, he pointed out, seemed aimed at liquidating late short positions before the price turned bearish yet again—characteristic of the liquidity hunt often seen prior to market reversals.
With the previous week’s candle closing in the bearish territory, the analyst emphasized a critical observation: during the current week, there was yet another liquidity sweep, which appeared to trigger another downward rejection in Bitcoin’s price.
However, he cautioned that the current recovery in Bitcoin’s value is largely fueled by leveraged positions. Given the prevailing bearish market structure, he suggested a likely depletion of buy pressure, indicating a potential drop to $64,900 for yet another liquidity sweep.
In the medium term, KillaXBT anticipates Bitcoin may breach the external range lows at $63,000. Furthermore, he noted that this anticipated downward movement aligns with expectations of a swift reversal back towards $72,800, where additional selling pressure could emerge.
In a separate update on X, on-chain analyst Joao Wedson highlighted a significant behavioral shift among short-term Bitcoin holders, indicating many are increasingly selling off their assets. This change is captured by the Short-term Holder Net Position Change metric.
This group usually comprises investors who have held onto Bitcoin for less than 155 days and are typically more sensitive to rapid price changes compared to long-term holders. Consequently, the selling actions of these newer investors can signify a shift in market sentiment, in this case suggesting a bearish outlook.
Such impulsive selling generally pressures Bitcoin’s price downward, supporting the notion that the cryptocurrency may indeed be heading towards the $63,000 mark in the near future before any substantial recovery efforts are observed. Currently, Bitcoin is trading at approximately $67,256, registering a modest increase of 0.5% in the last day.
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