- Bitcoin’s historical post-halving patterns suggest a potential parabolic rally in the coming weeks.
- Clearing liquidity below $50K leaves fewer barriers as BTC eyes $70K and new all-time highs.
Bitcoin [BTC] was approaching a potential breakout as it nears key resistance levels. Analysts are focusing on historical price patterns following Bitcoin’s halving events, which have often led to parabolic price increases.
Recent price action, including a liquidity grab below $50K, suggests that BTC may be preparing for a major move toward $70K and beyond.
Bitcoin halving patterns indicate potential rally
Historically, Bitcoin experiences significant price growth following its halving events, which reduce the supply of new BTC.
According to Rekt Capital, a crypto trader, Bitcoin is close to reclaiming its ReAccumulation Range and resynchronizing with its post-halving price tendencies.
The halving typically leads to a supply shock, causing demand to exceed supply, which can push prices higher.
Source: X
Adding that Bitcoin could break out in the next few weeks, Rekt Capital said,
“Bitcoin is so close to reclaiming the ReAccumulation Range and resynchronizing with post-halving price tendencies.”
Liquidity grab below $50K clears path for higher levels
On August 5th, Bitcoin experienced a liquidity grab below $50K, clearing out a major liquidity cluster. This event has created an opportunity for BTC to retest higher levels.
According to Daan Crypto Trades, “Bitcoin has taken out a big liquidity cluster down below $50K,” leaving fewer liquidity clusters nearby.
Source: X
With less liquidity in Bitcoin’s current price range, there are fewer barriers to upward movement. Major clusters remain below $47K, which serves as a critical support level.
If Bitcoin holds above this support, it may continue its ascent, with $70K being the next major resistance level on the horizon.
Upside targets above $70K and key resistance levels
The next significant upside target for Bitcoin lies above $70K, where a large liquidity cluster awaits. Traders are also focusing on the $60K range, a key resistance level that BTC must break to sustain upward momentum.
If Bitcoin clears this resistance, it could push toward $70K and potentially set new all-time highs.
However, breaking through $60K will be crucial for any sustained rally. If BTC maintains its momentum, it could follow the historical trend of post-halving rallies, moving past $70K and beyond.
Despite the bullish outlook, downside risks remain. The $47K level is critical support, with large liquidity clusters below this range. If Bitcoin fails to hold this support, it could experience a further pullback, potentially moving back toward the $47K mark or lower.
A recent report by AMBCrypto noted that Bitcoin is recovering from a five-month dip, with current prices resembling those of 2021, just before a major rally. Open contracts for Bitcoin have also increased compared to 2021, suggesting potential for further price growth if market conditions improve.
Bitcoin market sentiment and metrics
As of press time, Bitcoin was trading at $58,654, with a 24-hour trading volume of $24.5 billion. This represents a 2.54% decline in the last 24 hours, but a 7.19% increase over the past week.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
The MVRV Z-Score, which measures Bitcoin’s market value relative to its realized value, is nearing 2.75, indicating higher valuation levels. Historically, a Z-Score above 5.27 has signaled market tops, as seen in November 2013.
Source: IntoTheBlock
With fewer liquidity barriers and key levels approaching, Bitcoin is poised for a potential breakout, with traders closely watching for a move past $70K.