Bitcoin is approaching $69K. Is BTC ready for a new all-time high?
Doubts are mounting among investors regarding Bitcoin's [BTC] performance, as it struggles to stay above the $70k milestone. Yet, this narrative may just be the tip of the iceberg, for BTC might be gearing up to scale new summits, should historical patterns unfold once more.
Bitcoin’s Strategic Blueprint
Insights from CoinMarketCap illustrate that after Bitcoin's dip from $70k to $68k, it is progressively climbing back towards $69k. Over the past week, the cryptocurrency has seen an upward adjustment of more than 3% in its price.
At the moment, BTC's trading value stands at $68,953.86, with its market capitalization exceeding $1.35 trillion.
A noteworthy crypto analyst, Mags, shared a tweet igniting optimism for a significant price rally. According to the tweet, the current cycle in 2024 shares numerous resemblances with the 2016 cycle of BTC.
The Relative Strength Index (RSI) has recently retreated from the overbought territory as the price transitioned into lateral movement, echoing the patterns observed in 2016.
Specifically, during 2016, the RSI escalated from 60 to 90 on three occasions before the price experienced its peak. Presently, this metric has escalated only once, hinting that Bitcoin’s bullish phase is likely to continue for a while.
Hence, should past patterns recur, and BTC mimic its previous trajectory, it could very well establish new record highs.
Can Indicators Back a Rally?
An analysis of CryptoQuant’s data by AMBCrypto aimed to determine if indicators were in favor of BTC’s ascent. It was revealed that Bitcoin’s net deposits on exchanges were notably low compared to the seven-day average, suggesting diminished pressure to sell.
The selling pace of miners was also found to be moderate, as indicated by the minimal Miner Position Index (MPI).
Furthermore, a positive tilt in its funding rate indicated that derivatives traders were leaning towards purchasing BTC. Despite this, the general market sentiment concerning the leading cryptocurrency was pessimistic.
Our examination revealed that both the Coinbase Premium and Korea Premium were in the red, signifying a prevalent selling mood amongst investors in the US and Korea.
A deeper dive into BTC's daily chart was pursued to grasp its probable direction. This analysis showed that the Moving Average Convergence Divergence (MACD) portrayed a bullish lean in the market.
The Chaikin Money Flow (CMF) experienced a notable increase as well. These indicators pointed towards a probable bullish turn for BTC.
Nonetheless, not all indicators were supportive of a bullish perspective. For instance, following a significant rise, the Money Flow Index (MFI) began to recede, suggesting a potential price correction looming ahead.
