In recent days, the cryptocurrency market has been rocked by significant volatility, particularly impacting Bitcoin, which has struggled to maintain its position above critical support levels. Following the release of the U.S. jobs report, Bitcoin initially surged to approximately $57,000 before abruptly plummeting below $55,000. This swift price movement resulted in nearly $50 million in liquidations within the span of one hour. Major altcoins, including Ethereum, Solana, Ripple’s XRP, and Cardano, similarly endured losses ranging from 3% to 5%, highlighting the pervasive nature of this market downturn.

Currently, Bitcoin is testing crucial support levels, notably below the $56,000 to $57,000 range, and is now positioned around the key threshold of $54,000. Analyst Josh from Crypto World suggests that Bitcoin may consolidate within the $55,000 to $57,000 zone prior to making any significant directional changes. While a rebound could occur if this support is maintained, a break above the existing resistance levels would necessitate stronger bullish momentum, which currently appears to be lacking.

Even if a temporary rally takes place, Bitcoin is confronted with formidable resistance at multiple price points — specifically at $59,500, the range of $60,000 to $61,000, $62,900, and a notable resistance zone at $64,500. Should Bitcoin fail to penetrate these levels, it may face rejection and continue on a downward trajectory, further complicating any potential recovery efforts.

Should the price descend beneath the critical support of $56,000, traders should brace for a significant support test at around $54,000. Presently, Bitcoin is hovering near this critical level, indicating that a breach may occur in the near future. An examination of the Bitcoin liquidation heat map reveals a period of erratic price action, with the market primarily moving sideways. However, liquidity appears to be building at $55,000, which may influence forthcoming price movements. The most critical liquidity area identified lies between $59,800 and $60,000, a zone of paramount interest for the trading community.

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