What’s next for Bitcoin price now that German gov't BTC balance hits zero?

Despite the news, Bitcoin price remains constrained within a tight range where $60,000 serves as resistance and $54,000 as support.

Let’s take a look at some of the technical factors behind Bitcoin’s recent price action.

Bear flag continuation and resistance at $60,000

Bitcoin’s breakdown from $60,000 confirmed the M-top (or double-top) and a pattern of bear flag continuation has set in. Note how the downtrend accelerates alongside increasing sell volume and attempted breakouts to the upside are capped by weak buy volume.

Ideally, traders would want to see this pattern broken by a strong high volume push above the $60,000 level where the 61.8% Fibonacci retracement level resides and then a few daily candle closes above $60,000 to establish support at or above this level.

Bitcoin order book depth and liquidation levels

In crypto, price tends to go in the direction where the most liquidity lies and comparing the BTC/USD volume profile against Bitcoin’s order book depth in the 2% to 5% range its clear that price has been ping ponging between the bids around $54,000 to $57,000 and the block of asks sitting at $60,000.

Liquidation maps show leverage traders opened heavy longs around $56,500 so the situation could get tricky if price breaks below that level and the current pattern of bear flag continuation holds up.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.