Bitcoin has crossed the critical $65,000 resistance level after several days of bullish price action and growing optimism following last week’s interest rate cuts. This impressive move has excited analysts and investors, who are now speculating about higher prices in the coming weeks.
The recent rally, fueled by renewed confidence in the market, suggests that Bitcoin may be poised for a strong upward trend.
Key data from CryptoQuant indicates that the average profit for Bitcoin investors has increased significantly but remains well below previous highs, indicating room for further growth. This bullish momentum reflects a positive shift in sentiment and the potential for BTC to challenge all-time highs.
As BTC continues to gain momentum, market participants are closely monitoring its price behavior, anticipating whether or not this rally will lead to a longer rally.
With Bitcoin price action breaking key resistance and showing signs of strength, the focus is now on whether this momentum will continue. Investors and traders are looking to see if Bitcoin can maintain its upward trajectory, surpassing current levels and possibly setting new records in the coming weeks.
The Bitcoin network has room to grow
Bitcoin has seen a remarkable 22% rise since early September, when prices and market sentiment were hovering near yearly lows.
This major shift has sparked renewed optimism among investors, who believe that Bitcoin may rise further in the coming weeks, especially after the Federal Reserve’s recent announcement. The shift in sentiment is evident, with many analysts anticipating an upward trajectory for the major cryptocurrency.
A prominent on-chain analyst and CryptoQuant researcher recently shared a compelling idea Chart and report on Xhighlighting a key metric that demonstrates Bitcoin’s continued growth potential.
The data reveals that Bitcoin investors are currently making impressive profits, with average daily profits of $571 million compared to losses of $115 million. This equates to an average net profit of $456 million per day, a large number that indicates strong market confidence.
Interestingly, these profits, while significant, are still a small fraction of what was seen earlier in the year. In March, generated profits peaked at around $3.6 billion per day, indicating that there is still plenty of room for growth in the current cycle.
This comparison suggests that the recent rise in Bitcoin’s price is just the beginning of what could be a much larger rally, as the market has not yet reached the same levels of euphoria seen during previous rallies.
As BTC continues to gain momentum, market participants are watching closely to see if this trend will continue. The potential for further gains is clear. However, maintaining this upward trajectory will depend on whether Bitcoin is able to maintain its current momentum and navigate through any potential resistance levels in the coming weeks.
Bitcoin Technical Analysis: Price Levels Must Be Maintained
Bitcoin is trading at $65,637 after the daily uptrend was finally confirmed with a strong close above the 200 Moving Average (MA) at $63,823. The move has sparked positive sentiment among investors, who now expect prices to rise in the coming days. Market participants see this confirmation as a bullish signal, indicating the potential for further gains.
If BTC can hold above the crucial level of $65,000 and continue to close above the 1D 200 MA, the next major supply level to be tested is around $70,000. Crossing this resistance could lead to a strong rally, which could push Bitcoin to all-time highs. However, price action must maintain momentum to avoid a potential pullback.
On the other hand, if BTC fails to maintain its position above these levels, a healthy rebound to $60,000 could serve as a consolidation phase. This would allow the price to test demand and build a stronger base before any strong rally.
Such a correction would not necessarily be bearish, as it could provide a more stable basis for the next upward move, allowing investors to buy at lower levels before a potential breakout.
Featured image by Dall-E, chart from TradingView
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