Bitcoin is on the verge of a new rise as it approaches a notable resistance area in the market. Particularly notable resistance in the $79,000 to $80,000 range also coincides with a major short liquidation zone at $76,500. This indicates that nearby liquidity lines may clear and then selling pressure may increase again.
The chart points to a repeating top pattern
According to the analysis of Ted, who shared the chart on the social media platform The Bitstamp chart reveals that the price is trading around $75,000, having recovered after a sharp decline at the beginning of the year. In the formation that draws attention in the chart in question, the price in the previous two local peaks quickly changed direction and peaked after the top of the hard selling candle, defined as “capitulation”, was exceeded.
The latest rise occurred after a high-volume sell-off and the price is now close to the yellow resistance zone. This zone almost coincides with the top of the previous hard selling candle. Based on past examples, Ted expects the price to pull back after this rise if this pattern repeats.
According to comments, in the past, Bitcoin managed to briefly exceed the top of such selling candles before seeing the local top. Therefore, Ted says that if the price reaches the $79,000-$80,000 range, he will be prepared to open a short position in Bitcoin at that level.
“In the past two peaks, the top of the hard selling candle was first tested, and then the peak was formed in a short time. If the same pattern repeats, I expect a similar reaction and if the price reaches the $ 79,000-80,000 range, my short position is ready,” he states.
Despite this, the chart does not yet confirm a definitive top formation. For now, Bitcoin is below the relevant resistance range and the short-term move is still ongoing. The next step will be decisive: if the price tests this zone and pauses there, it could signal a new top; If it is clearly exceeded, the analyzed pattern may fail.
Two important liquidity areas stood out in the market
Another analysis Ted shared on X focused on Bitcoin’s movement between two distinct clusters of liquidity. The “liquidation map” featuring data from CoinGlass showed a large short liquidation area above, near $76,500, and an intense long liquidation pocket below, near $69,500. Currently, the price seems to be stuck around these two areas in the market.
The liquidation heat map in question uses bright bands to reveal the accumulation points of leveraged positions. Yellow tones generally symbolize developing liquidity, that is, price movements directed there. The cluster near $76,500 threatens to squeeze short positions, while the cluster near $69,500 signals a larger risk of liquidation on the downside.
According to Ted’s prediction, Bitcoin may try to peak again this week and then decline again. In such a case, the liquidity area above will be the area tested first, but subsequently the market can be expected to slide downwards again to the $69,500 support.
Although the chart does not give a clear direction at the moment, two distinct strong magnetic fields have formed in the market. While Bitcoin is currently stuck between these two major liquidity zones, it seems likely that which side breaks first will be decisive on the price for a while.
