Bitcoin (BTC) is currently hovering around a critical breakout level as of October 19, following a “FOMO liquidity grab” that saw the price approach $69,000 before facing a rejection.
Data from Cointelegraph Markets Pro and TradingView indicates that BTC’s price action has been constricting after the final trading session of the week on Wall Street.
On October 18, Bitcoin reached new three-month highs, nearly touching $69,000 on Bitstamp before retracting its gains.
Popular trader Roman noted on social media platform X that the breakout was characterized by “low volume + bear divergences,” suggesting a potential pullback before any significant upward movement.
“Still think we come back down and consolidate before moving higher. This seems like a FOMO liquidity grab before the real breakout,” he stated.
Monitoring resource CoinGlass has reported thick liquidity walls forming around the current spot price, which are preventing BTC from breaking through resistance levels. Roman highlighted a critical area of interest at $68,400, which corresponds to a significant breakout zone since March’s all-time high.
“Everyone is watching $68.4K to break the macro range,” he concluded.
Fellow trader and analyst Rekt Capital emphasized that bulls need to solidify the support zone immediately above $68,000. He explained that Bitcoin is pressing against the upper limits of its resistance area and needs one daily close beyond this resistance to confirm a breakout.
“The Oct. 18 daily close ultimately came in marginally above $68,400, marking Bitcoin’s highest close since June 10,” he noted.
In terms of broader market sentiment, trading firm QCP Capital provided positive news for Bitcoin bulls. They noted strong institutional inflows and three-and-a-half-year highs in Bitcoin’s market cap dominance, suggesting that other Layer 1 (L1) coins could benefit from this momentum.
Concurrently, Bitcoin dominance stood at 58.88%, having briefly reached 59% on October 17. Attributing to the surge in Bitcoin, QCP Capital remarked “With U.S. equities nearing all-time highs and the Japanese yen weakening, risk-on sentiment is expected to grow stronger as we approach the U.S. election. This environment will likely propel risk assets higher and support our ‘Uptober’ narrative.”
As of October 19, Bitcoin’s price is approximately $68,251.23, reflecting a slight decline of 0.25% or $170.27 from previous levels. The monthly performance stands at an increase of 7.7%, mirroring gains observed in September.
Bitcoin’s current price action suggests a critical juncture as it tests key resistance levels around $69,000 while navigating market dynamics characterized by low volume and liquidity constraints. Analysts remain cautiously optimistic about potential breakouts but emphasize the importance of confirming support levels above $68,000 for sustained upward momentum.