As a seasoned financial analyst with extensive experience in the cryptocurrency market, I have closely monitored Bitcoin’s recent price action and have formed a strong bullish opinion based on both technical and on-chain analysis.
I’ve observed an increase in Bitcoin‘s demand lately around the significant support level represented by the 100-day moving average. This surge in interest has resulted in a noteworthy price rebound.
The current price trend indicates a positive outlook in the market, suggesting further gains and possibly reaching new record highs.
Technical Analysis
By Shayan
The Daily Chart
An in-depth examination of Bitcoin’s day-to-day price chart shows that after a rebound in buying interest around the crucial $53,000 support zone, Bitcoin started a robust upward trend, breaching multiple significant resistance thresholds and instilling optimism among investors.
With my extensive background in financial markets and technical analysis, I have observed countless price movements and trends over the years. Based on this experience, let me explain the current situation with regard to certain key zones in the market I’m following.
Bitcoin has seen increased demand around its 100-day moving average and has bounced back towards the $67,000 mark. If market circumstances remain favorable, the uptrend leading to the notable resistance level of $70,000 in the medium term could persist.
The 4-Hour Chart
After hitting a supportive level around $54K on the 4-hour chart, which marked the lower boundary of a multi-month wedge formation, Bitcoin’s price surged in a robust uptrend, peaking at approximately $68K – the upper trendline of the wedge.
As a researcher studying the cryptocurrency market, I’ve noticed some intriguing price movements with Bitcoin (BTC). The persistent push to break above the $70,000 resistance level is a strong indication that buyers are eager to establish a new all-time high for Bitcoin in the near future. In fact, during this recent rally, the Bitcoin price has been forming an ascending short-term trendline which functions as a crucial support for BTC’s price movements in the immediate term.
Bitcoin encountered significant resistance just above the wedge’s peak, causing it to reverse course and decline towards the trendline and the support level of $64,000.
Despite the cryptocurrency’s previous advancement being fueled by its adherence to the trendline and the $64K mark, triggering another push towards the triangle’s peak, the current price action is being contained by the supportive ascending trendline and the resisting upper boundary of the wedge. This creates a triangular configuration.
If the price of an asset breaks above the upper boundary of its wedge pattern, it may signal a resumption of the bullish trend and a potential advance towards the $70,000 level. On the other hand, if the price falls below the ascending trendline defining the wedge, there could be a correction back to the $64,000 region.
On-chain Analysis
By Shayan
It’s important to take a closer look despite Bitcoin’s price showing signs of a bullish turnaround, as it remains uncertain whether this trend will continue.
The Taker Buy/Sell Ratio, an essential tool for assessing futures market sentiment, offers valuable perspectives on market trends. A ratio greater than 1 signifies robust buying activity from bulls, while a ratio less than 1 indicates substantial selling pressure from bears.
The chart showcases the Taker Buy-Sell Ratio, which has dramatically spiked above the “1” benchmark alongside Bitcoin’s resurgence in bullish momentum. This spike signifies robust buying demand in the perpetual market, suggesting a substantial bullish outlook and heightened purchasing activity. If this upward trend in the Taker Buy-Sell Ratio persists, it could signal a potential prolonged bull market, with the price potentially reaching $70,000.
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2024-07-26 15:01