Bitcoin Consolidates Below All-Time Highs as $69,000 Resistance Looms

Bitcoin continues to consolidate below its new all-time highs, with the BTC price facing repeated rejections above the $70,000 mark. As the weekend trading session neared the May 26 weekly close, Bitcoin hovered around key price levels, focusing on the $69,000 threshold.

Data from Cointelegraph Markets Pro and TradingView highlighted a strong performance by BTC/USD, which briefly surpassed $69,500 before entering a consolidation phase. Despite some market observers predicting a weekend upside, familiar resistance zones kept gains in check.

"As the price ranges around ~$69K, liquidity is building up on both sides," noted popular trader Daan Crypto Trades in his latest analysis on X (formerly Twitter). He pointed out key levels to watch in the short term, specifically $68.3K and $69.8K, indicating significant liquidity concentrations for the BTC/USDT perpetual swaps pair on Binance.

In BTC order books, liquidity around the spot price has been increasing. This rise in liquidity has led to lower volatility but increased the chances of a potential liquidity raid in the future. Keith Alan, co-founder of trading resource Material Indicators, emphasized the critical importance of turning $69,000 into a support level. "Bitcoin lost $69k again. It's our strongest and most important resistance level on the chart," Alan stated in his latest X post. He expressed a desire to see a weekly close above $69k to build confidence in a potential move to $73k.

Alan also acknowledged the impact of the United States markets being closed on May 27 for the Memorial Day holiday, which could influence trading volumes and price action.

Bitcoin May Consolidate for "Several More Weeks"

Looking at resistance levels, popular trader and analyst Rekt Capital brought attention to the area above $71,000. Updating his X subscribers on BTC price action following the April block subsidy halving, he confirmed that the market had exited the "danger zone" typically associated with such events. However, he cautioned that bulls are not yet in the clear.

"Since the Bitcoin Post-Halving ‘Danger Zone’ ended, Bitcoin broke out to $71,500. However, ~$71,500 is where the Range High resistance of the Macro Re-Accumulation Range is, and this is where Bitcoin faced rejection," Rekt Capital explained. He added that the consolidation phase is likely to continue for several more weeks, with Bitcoin fluctuating between $60,000 and $70,000.

If this scenario unfolds, the May monthly close could still end in the red, aligning with the trend observed over the past three years, according to data from monitoring resource CoinGlass. This ongoing consolidation phase underscores the volatility and uncertainty in the Bitcoin market as it navigates through significant resistance levels.