Bitcoin Plummets 3% as Traders Brace for $69,000 Retest

Bitcoin (BTC) has experienced another 3% decline, raising questions about whether the price is headed for $69,000 next. The recent weakness in BTC price action has accelerated as the weekly close approaches, with data showing BTC/USD down over 3% on March 9. This decline has led to significant liquidation levels on either side of the spot price, with longs already paying as BTC/USD sags to $83,000. Popular trader TheKingfisher warned followers on X about the intense interest among Bitcoin traders as the weekly candle close nears, noting that there are lots of LONG liquidations around $84,300 and shorts stacked near $86,500-$87,000.

Exchange order books are forming an area of intense interest among Bitcoin traders as the weekly candle close nears. Liquidation levels on either side of the spot price look ripe for the taking, with the thickest bid liquidity across exchanges standing at just below $83,000 at the time of writing, with the spot price dangerously close to breaking lower. Data from monitoring resource CoinGlass currently puts aggregate 24-hour crypto liquidations at over $300 million.

There is a bearish BTC price take suggesting that the market is not done retesting levels not seen since November last year. For popular trader Mikybull Crypto, there is a clear chance that Bitcoin will retest its 50-week simple moving average (SMA). BTC/USD last interacted with the 50-week SMA in September but has avoided a weekly candle close below it since March 2023. The 200-day SMA is also back on the radar as price challenges it as support for the first time since October.

As reported last week, a historically accurate BTC price mechanism suggests that the real floor now lies at around $69,000. This would take BTC/USD back to its old 2021 all-time high and mark a 37% correction versus its current one. The Lowest Price Forward tool gives 95% certainty that Bitcoin will not go any lower. Its track record is impressive, having correctly stated that BTC/USD would never revisit $10,000 after September 2020.