As the trade approaches the weekend, the rally is turning in favour of the bears as the star token experienced huge selling pressure. The price, which was about to surpass one of the important resistances at $71,500, slashed hard close to the key support zone between $68,096 and $68,581. While the market participants speculate for a strong rebound to regain the lost levels, the trade setup suggests the BTC price could head towards lower levels below the support zone.
Presently, the total open interest in Bitcoin is still hovering around $20 billion. These levels are similar to that of the previous cycle when it topped, which suggests the price is around the same level. Therefore, if the price breaks higher, then the open interest may also go higher. This scenario remains open as the token continues to hold above the crucial support zone as the traders have acquired a huge amount of Bitcoin at a certain range.
A popular analyst, ALI, shared some interesting information about 1.97 million addresses acquiring nearly 964,000 BTC, which is anchored between the support levels between $69,380 and $67,350. Therefore, the analyst suggests that Bitcoin is required to hold and sustain at these levels to trigger strong upward momentum. Regardless of the mounting bearish pressures, the price continues to remain within an ascending parallel channel, substantiating the bullish claim.
The Bollinger bands are squeezing, while the DMI has also started contracting, which suggests the price is experiencing a major volatility squeeze. This could result in a huge price action, while the direction could be highly dependent on the volume induced. The current trade set-up suggests that the bears have gained huge momentum due to the possibility of a bearish pullback.
Therefore, the Bitcoin price, which is trying to find a base in the average range of the bands, may enter the key support zone and if bulls fail to display their strength, a steep plunge to $66,800 may be imminent.