A well-followed crypto trader on X warned this week that Bitcoin could be headed lower — potentially testing the $63,000 area — after a series of liquidity-driven moves altered the market’s structure.
What the trader is seeing
- On April 4, X user KillaXBT laid out a weekly-timeframe setup that, in his view, favors more downside and volatility. He traces the sequence back about four weeks, when a sweep of external range highs preceded a rapid reversal and a bearish weekly close.
- That reversal forced BTC to “rebalance,” rallying back toward roughly $71,500 to hunt late short positions before reversing down again — a classic liquidity sweep ahead of trend continuation, KillaXBT says.
- With last week closing bearish and this week already clearing additional liquidity, the analyst argues the market’s recovery so far has been largely driven by leveraged positions. Given the existing bearish structure, he believes buy pressure could run out, exposing the $64,900 lows for another sweep and, in the mid-term, a breach of external range lows near $63,000.
- The analyst also notes this downside scenario could set up an immediate reversal back toward about $72,800, where further selling may be waiting.
On-chain signals back the near-term bearish case
- On-chain analyst Joao Wedson (also on X) highlights behavior among short-term holders — investors who have held BTC for less than 155 days — showing they’ve been net sellers recently, as measured by the Short-term Holder Net Position Change metric.
- Because this cohort tends to be more reactive to price moves, sustained selling from them can add meaningful bearish pressure and amplify declines, supporting the view that BTC could slide toward the $63,000 area before any substantial recovery.
Key levels to watch
- Support/exposure: $64,900 and $63,000
- Resistance/liquidity spots: ~$71,500 and ~$72,800
Context
- At the time of writing, Bitcoin trades around $67,256, up roughly 0.5% over the past 24 hours. Traders should be mindful that liquidity hunts and leveraged flows can create sharp, fast moves — and that on-chain activity from short-term holders may increase downside momentum in the near term.
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