The $55k liquidation cluster was not tested as the bulls halted the price from falling below the $60k psychological support.has gained 4.5% since Saturday, the 29th of June. In doing so, the support zone that stretched back to the 1st of March was retested and defended as support. Additionally, the range lows of the past three months’ price action were also saved.At press time, the mid-range mark at $63.3k served as resistance.
However, in the lower timeframes, the bearish sentiment of the past week and the lopsided futures market meant that liquidation levels to the north might be hunted. The question of why Bitcoin is going up is partially answered there, but there are other factors at play too. Will the bulls drive prices higher?The 30-day MVRV ratio was negative, meaning that short-term holders were out of the money. However, in the past six weeks, the mean coin age has firmly trended higher. This was a positive combination.
It indicated accumulation amongst holders while also signaling an undervalued asset. Together, it marks a short-term buying opportunity. This could set up a rally for the king of crypto. However, the Network Value to Transactions Ratio, calculated here based on circulation, showed that Bitcoin was overvalued when compared to the amount of BTC transacted on-chain daily.The $55k liquidation cluster was not tested as the bulls halted the price from falling below the $60k psychological support. Not every zone of high liquidity needs to be tested. If the price continues to climb higher, the $73k zone is the next area of interest for traders.