Analyst Identifies $63,000 As Key Support For Next Bitcoin Move

A popular crypto trader has come forward on the social media platform X to predict that the Bitcoin price might soon head further downwards to the $63,000 level. This prognosis is based on the liquidity dynamics that have, over the past few weeks, driven the flagship cryptocurrency’s price. 

In a 4th of April post on the X platform, KillaXBT revealed the possible trajectories the Bitcoin price could follow over the coming weeks. The crypto trader’s analysis is based on the current technical structure of BTC, citing multiple support and resistance levels visible on its weekly timeframe. 

The analyst explained that the past few weeks had investors seeing multiple sweeps across external highs and internal lows. More precisely, the sequence appears to have started about four weeks ago with a sweep of external range highs, which in turn triggered a swift reversal of the Bitcoin price — eventually leading to a bearish weekly close. 

KillaXBT explained that, owing to this move, Bitcoin had to find balance again; this led the flagship cryptocurrency’s weekly candle back again towards $71,500. Interestingly, this move was with the apparent intention of sweeping late short positions, before prices reversed bearish once more — a move KillaXBT pointed out to be the classic liquidity hunt seen before reversals.

Because the previous week’s candle closed bearish, the crypto pundit highlighted another noteworthy event; the current week also swept some liquidity (another rebalancing event). What followed this sweep is evidently another downward rejection of the BTC price.

However, because Bitcoin’s recovery is majorly being driven by leveraged positions, and with the market structure already bearish, KillaXBT implies that available buy pressure might soon be exhausted. As such, the $64,900 lows seem to be exposed for another such liquidity sweep.

In the mid-term, the technical analyst also sees Bitcoin breaching the external range lows at $63,000. On another note, the market quant highlighted that this downside sweep falls in line with expectations of an immediate reversal towards $72,800, where yet another sell move lies in wait.

In another post on X, on-chain analyst Joao Wedson shared that there has been a notable shift in behavior among short-term participants in the Bitcoin market, with the data suggesting that this cohort is increasingly offloading their holdings. The relevant indicator here is the Short-term Holder Net Position Change metric.

This investor cohort typically includes investors who have held Bitcoin for less than 155 days. As such, they are often more reactive to sudden changes in price action, as opposed to the more seasoned market participants. 

By extension, the activity of these new holders can actually reveal the change in sentiment (in this case, a bearish one). When this happens (impulsive selling activity), the Bitcoin price often heads south, as these sales contribute to bearish pressure. 

Thus, the world’s leading cryptocurrency could indeed be heading towards $63,000 in the near-term, at least before any real recovery attempts would be seen. As of this writing, Bitcoin trades at around $67,256, reflecting a 0.5% growth in the past day.