Bitcoin Eyes $72K as 'Power of 3' Signals Recovery

• Bitcoin dipping to $68,000 and entering the "Power of 3" recovery phase.
• Key levels needing to flip to sustain momentum toward $72,000.

Bitcoin appears poised for a potential rebound to $72,000 as key technical signals align following its recent dip to $68,000, Cointelegraph reported on June 4, 2024. This movement reflects the emergence of a key technical pattern, the "Power of 3," which consists of three phases: accumulation, manipulation, and distribution. Analysts believe Bitcoin has completed the first two phases and may soon enter the distribution phase, pushing prices higher.

For Bitcoin to sustain a bullish recovery, it must break and turn key resistance levels at $69,000 and $70,000 into support. Analysts identified the $70,000 price level as a significant psychological level, likely influencing future price movement. A successful push past this level may solidify the next leg of Bitcoin's recovery.

The recent correction caused a market-wide liquidation event totaling $292 million. This event significantly reset leverage in the crypto markets. According to Cointelegraph, this event exhausted selling pressure. Historical analysis suggests such liquidations often mark local bottoms, which potentially aligns with Bitcoin's current technical signal.

Meanwhile, negative funding rates across futures markets suggest that traders are betting on continued price declines. These conditions create an incentive for upward moves, as they can amplify a market squeeze against bearish positions. Additionally, a drop in Binance’s cumulative net taker volume indicates a capitulation event took place. Historically, this is a precursor to price rebounds.

As of June 4, 2024, 15:09 UTC, Bitcoin (BTC) is trading at $69,105.21, with a 0.046% 24-hour price increase. The cryptocurrency's trading volume over the last 24 hours decreased by 16.791%, according to the latest market data.