Crypto analyst LP has declared that Bitcoin hasn’t seen a true bottoming formation yet, despite the price looking to form strong support at current levels. This comes as BTC looks to reclaim the psychological $70,000 amid talks of a ceasefire between the U.S. and Iran.
Bitcoin Is Still At Risk As The Price Is Yet To Form A Bottom
In an X post, LP stated that Bitcoin hasn’t shown a true bottoming formation and suggested that the leading crypto isn’t yet close to a bottom. He alluded to previous bear cycles, noting that bottoms were formed after multiple sweeps of the lows, which forced capitulation before BTC made a reversal.
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However, the analyst noted that this time has been different, with Bitcoin consistently sweeping the highs, making it difficult to enter short positions while leaving the lows exposed and building liquidity below. He declared that it is likely a matter of time before price targets lower wicks, which can then lead to a proper bottoming process ahead of the next bull cycle.
LP stated that when that breakdown eventually happens, market participants need to watch the price action closely. He remarked that a true bottom is likely forming when price starts repeatedly sweeping the lows, making it psychologically difficult to enter longs. It is worth noting that Bitcoin has been on a recovery since the February 6 lows and has yet to form a new low.
Bitcoin’s recovery has come amid the U.S.-Iran war, with the leading crypto holding strong above key support levels despite escalating tensions. BTC is now looking to reclaim the psychological $70,000 level amid reports that the U.S. and Iran are working on a 45-day ceasefire to end the war.
A Decline To $63,000 Still On The Cards
In another X post, LP stated that it is only a matter of time before the $63,000 level gets swept. He noted that price remains range-bound and that both sides will continue to get chopped, but that the target remains clear. As such, the analyst advised that the best approach is to enter at the extremes of the range. “Even with a bearish HTF bias, 63–62K stands out as a solid area for hedge longs against the short from 73K,” he added.
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Commenting on the lower time frame, LP noted that high-leverage short clusters have been cleared, while larger clusters remain overhead, extending to the $75,000 level. Meanwhile, to the downside, he stated that long liquidation clusters are building around $66,000, adding liquidity below. Overall, the analyst revealed that liquidity remains more concentrated to the upside, but that as long as the price remains range-bound, both sides are likely to be cleared.
At the time of writing, the Bitcoin price is trading at around $69,100, up over 3% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com