Bitcoin climbed above $71,500 on Tuesday, reaching its highest level of the week as cryptocurrency markets followed a broader rebound in global stocks. However, analysts say the rally could face resistance in the near term.
Data from market trackers showed BTC gaining around 4.5% in a day, briefly trading above $71.5K during early Wall Street trading. The move mirrored a relief rally in equity markets, with the S&P 500 and Nasdaq Composite also posting modest gains.
Despite the upward momentum, traders are warning that liquidity conditions could trigger a short-term correction. Some analysts point to a significant liquidation cluster around $68,000, suggesting the price could temporarily dip to that level if bearish pressure increases.
Another key hurdle for Bitcoin is the 50-day moving average, currently near $73,500. Market observers say this level could act as strong resistance if bulls attempt to push the cryptocurrency higher.
Cryptocurrency markets remain volatile amid ongoing geopolitical tensions and fluctuations in global oil prices. Over the past 24 hours, total crypto liquidations have exceeded $350 mln, reflecting sharp price swings across the market.
Analysts say Bitcoin’s next direction will likely depend on whether it can break above the 50-day trend line or face renewed selling pressure from traders expecting a pullback.
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