Bitcoin, Will it Retest $70,000 to Fill the 'Imbalance Zone'?

▲ Bitcoin (BTC)/AI Generated Image ©

A warning has emerged that the 'price imbalance' created by Bitcoin during its short-term upward trend could trigger a pullback and act as a downward catalyst.

According to the cryptocurrency specialized media Bitcoinist on April 24 (local time), Bitcoin (BTC) recently broke through $78,000 in a weekend rally and rose to an intraday high of $79,380, but during this process, it left an 'imbalance zone (imperfection)' that the market is trying to fill again.

Cryptocurrency analyst Minga diagnosed that, based on the 4-hour chart, Bitcoin has now entered a phase of filling this imbalance. Specifically, a head and shoulders pattern, a typical bearish reversal pattern, is forming on the chart, with the left shoulder and head already complete, and the process of forming the right shoulder currently underway.

The key resistance zone is presented as $76,800 to $77,400. If the upward movement is halted in this zone, the uptrend will transition into a 'distribution zone,' making it highly likely for large investors to offload their holdings. The pattern's neckline is in the mid-$73,000s, a zone that overlaps with the rising trendline that has recently supported the price.

In case of a decline, a key observation point is the previous monthly high of $76,053. Analysis suggests that if it breaks below this price again, further downside could open up to $70,450, which has been identified as a liquidity target. Conversely, if this support level is maintained, the bearish scenario is invalidated.

An upward scenario is also open. If Bitcoin breaks through $78,332 and settles above that zone, the next target is presented as the monthly imbalance zone around $79,388. Currently, Bitcoin is trading around $77,640, showing a trend where its directionality is being tested just above the key resistance zone.

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