- Bitcoin and Ethereum were likely headed for their local highs this week.
- The band of resistance below $70k could pose a substantial obstacle to the buyers.
Bitcoin [BTC] managed to climb past the resistance zone at $60k-$61k and was trading a few dollars below $63k at press time. Traders have taken this as a sign that Bitcoin is headed toward its all-time high at $73.7k.
Selling pressure on BTC from the German government was depleted and spot ETF inflows last week were strongly positive, setting up a nice environment for a price rebound.
This sentiment saw a positive uptick on Monday, but here’s what is likely in store next.
Using the liquidation charts as a compass
In a post on X (formerly Twitter) crypto analyst CrypNuevo highlighted two scenarios for Bitcoin in the coming days. One of them was invalidated, which was a rejection from the former range lows at $60k.
The other was that the $60.6k resistance zone was flipped to support and retested before the prices bound higher toward the $68k and $73k resistance zones.
These are the two liquidity pools to watch out for higher, with $76.4k being another zone that could trigger a large amount of short liquidations.
This expectation came because the lower timeframe market structure would flip bullishly, and the liquidity levels to the north would be the next target after hunting the $55k zone earlier this month.
A retest of the $61k-$62k region could be a trigger for bullish traders to enter long positions targeting the $72k-$73k zone.
An increase of $3.4 billion in Open Interest since the 13th of July indicated bullish sentiment. Hence, traders can expect a positive crypto week ahead.
Ethereum also targets the local highs
The Ethereum liquidation heatmap showed that $3.5k-$3.7k is likely to be revisited soon.
Read Bitcoin’s [BTC] Price Prediction 2024-25
This was another positive development as the ETH bulls defended the $2.9k level, the 61.8% Fibonacci retracement level, and initiated a recovery from there.
A move toward $3.7k and as high as $4k was possible in the coming weeks. Over the next week, a move to $68k for Bitcoin and $3.7k for Ethereum was likely based on the evidence at hand.