Bitcoin Hints at Breakout as FOMO Liquidity Grab Holds $69K Steady

Bitcoin is hovering around a crucial breakout point as a recent "FOMO liquidity grab" attempted to push the price past $69,000 but ultimately faced rejection. As of October 19, Bitcoin (BTC) is priced at $68,174, having recorded its best daily close in over four months.

Data from Cointelegraph Markets Pro and TradingView revealed that BTC's price action has tightened following the last trading session of the week. On October 18, BTC/USD reached three-month highs, coming close to $69,000 on Bitstamp before retracing some of its gains.

Trader Roman noted on X that the breakout was marked by low trading volume and bearish divergence, suggesting that a pullback and consolidation are likely before any significant upward movement. He emphasized that the price action felt like a "FOMO liquidity grab" ahead of the potential real breakout.

Monitoring tool CoinGlass indicated substantial liquidity walls forming on both sides of the current spot price, with sell orders preventing further gains. Roman highlighted $68,400 as a critical area for market participants, marking an essential breakout zone since the all-time high in March.

Fellow analyst Rekt Capital pointed out that bulls need to solidify the area above $68,000 as strong support. He explained that Bitcoin is testing the upper limits of a resistance zone and needs a daily close above this resistance to confirm a breakout. The close on October 18 was slightly above $68,400, marking Bitcoin's highest daily closing price since June 10.

Positive macroeconomic factors for Bitcoin are aligning, including significant institutional inflows and a rise in Bitcoin's market cap dominance, which reached three-and-a-half-year highs. As of the latest report, Bitcoin's dominance was at 58.88%, having briefly approached 59% on October 17.

With US equities nearing all-time highs and the Japanese yen weakening, the overall risk-on sentiment is expected to strengthen, particularly as the US election approaches. Bitcoin has seen a 7.7% increase month-to-date, mirroring its performance in September.