Resistance at $72,000 crucial for new Bitcoin all-time high

If the Bitcoin price reaches the $72,000 level, it would act like a “fuse” and cause a breakout to $75,000, claims popular analyst Willy Woo. Why? Because at that price there would be a wave of short liquidations, forcing all these people to close their positions to buy Bitcoin.

Wave of liquidations could set new all-time high

“Touching the $72,000 is the fuse that could set off a wave of liquidations. $1.5 billion in short positions is ready for liquidation up to the $75,000 level,” said Willy Woo.

According to CoinGlass data, the price of $72,000 would already cause a liquidation wave of $800 million across all exchanges.

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Above the $72,500 level, that number goes to $1.2 billion. So we are getting closer to a crucial level for Bitcoin. In that respect, it is logical that we also see a lot of resistance for the bulls at this point.

Bitcoin breaks 2-week downtrend

On June 3, Bitcoin managed to break out of a two-week downtrend, Rekt Capital wrote on Twitter.

“Bitcoin today broke a two-week downtrend. But we’ve seen this happen before during this downtrend. For that reason, it is important that the close of the daily candle confirms the breakout,” said Rekt Capital.

This is now the case, so there is no longer a downward trend on the daily chart. Is this the moment that Bitcoin rebounds and starts rising towards a new all-time high?

Only time can tell us that. In any case, the price action we are currently seeing is promising.

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