Bitcoin liquidations alone won’t be enough to break the $70,000+ highs. Here’s why:

Over the past five days, the Bitcoin (BTC) price has bounced nicely from its recent low of $52,500, and technical charts suggest that this trend could extend to the $62,000-$65,000 range.

Similar to last week’s price action, on higher time frames Bitcoin is still making lower highs each week, with each sell-off solidifying the previous support level as resistance. Futures liquidation-driven sell-offs continue to make lower lows with relatively deep wicks, and while it may sound unpleasant, Bitcoin price is structurally in an orderly downtrend.

The preferred path for a market reversal on a weekly basis would be for the weekly close to be higher than the previous weekly candle and for the weekly candle to eventually close above $65,000. This would at least give the bulls a chance to overcome the range high of $66,000 and the downtrend line, and perhaps the 6-month downtrend.

Looking at more routine price action, savvy momentum traders will be having a great time since betting on buying at the downtrend line and selling at the 61.8% Fibonacci correction level has proven to be a profitable strategy.

Assuming the pattern of lower weekly highs continues, the Bollinger Bands, 200-day moving average, and BTC’s Fibonacci levels suggest that the current rally will hit a wall in the $62,000-$63,000 range.

relevant: Bitcoin Price Expected to Recover to $60,000 as Gold Price Reaches All-Time High

Beyond daily and weekly price movements, sustainable spot demand from buyers remains an issue.

As with the past few weeks, much of Bitcoin’s upward price action has been driven by forced buying due to liquidations, with momentum waning as there is less appetite to meet sell pressure at resistance levels.