Bitcoin continued its sideways indecision today, a theme that began last Friday.
That means this week has yet to make progress in either direction.
The level capping further upside remains the $28,920 macro resistance.
I wrote about the $29,000 area ahead of this week’s FOMC, given its significance since early 2021.
A higher time frame close above that is needed to open up higher targets for BTC.
However, I continue to think the near-term top is in for Bitcoin.
A significant factor in my bias is the liquidation heatmap below, which shows far more liquidations below current levels than above.
The chart above shows BTC liquidation clusters with brighter areas illustrating larger liquidation values.
As you can see from the chart above, these areas tend to serve as magnets for BTC, especially in ranging conditions.
So the liquidation pockets below $20,000 and lower hint at a possible correction.
But as useful as the chart above can be, it can’t confirm a top.
That’s an important distinction because only a higher time frame close below $26,500 will confirm that the BTC top is in.
Until that time, traders should expect choppy conditions to continue.
Although much more speculative, another level of interest this weekend is the March 15th trend line support.
We saw Bitcoin bounce from this level on Friday, so a 4-hour and daily close below it could force a $26,500 retest next week or even this weekend.
But everything is very speculative until BTC closes a day below $26,500 to open up downside targets like $25,200 and $24,100.
Alternatively, a daily close above $28,920 would negate the immediate bearish scenario.
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