The price of Bitcoin (BTC) surpassed the significant threshold of $65,000, implying a potential shift toward increased optimism and potentially stronger upward trends in the market, only a couple of days following the Bitcoin halving event.
Bitcoin breaks above $65,000 resistance
Bitcoin reached a new high of $65,000 on April 22, as per Kristian Haralampiev, the structured products lead at Nexo. This development could potentially indicate a shift in market attitude and mark the end of the ongoing price downturn, he suggested to CryptoMoon.
“Traditional finance markets opened relaxed on the back of tension in the Middle East, with risk-on assets going up, while gold opened lower. The increase in open interest across derivatives, along with higher levels of leverage and positioning in the options markets suggests a catch-up rally may be in the making.”
According to a recent analysis by well-known cryptocurrency expert Trader Alan in a post on April 22, Bitcoin reaching the $65,600 milestone once more on the four-hour chart might be an indication that the Bitcoin price is beginning to rise again.
“This breakout is associated with “higher lows into the resistance” pattern and [relative strength index] RSI breakout simultaneously. This tells us the buying power has developed and a strong LTF bottom has formed. This leads to further bull run.”
When Bitcoin’s weekly closing price surpassed the significant barrier of $65,600 recently, this level has emerged as a major hurdle for Bitcoin’s price increase, as per an analysis piece published on April 22 by renowned cryptocurrency expert Rekt Capital.
“Bitcoin is currently in the process of trying to perform this reclaim. A successful reclaim here would enable BTC for a move towards $67,150 which would be the next reclaim BTC would need to make successful for price to revisit the $69,000 via the green path.”
Bitcoin’s MVRV-Z metric resets
After last week’s price drop for Bitcoin, the MVRV Z-score, a technical measurement indicating if an asset is overbought or oversold, decreased to 2.08 on April 17, as reported by LookIntoBitcoin. This implies that Bitcoin is no longer considered overbought based on this indicator.
According to Philip Swift, founder of LookIntoBitcoin, the trend indicated by the data is positive and consistent with past bull markets, as he mentioned in his April 22 post on X.
“Bitcoin MVRV Z-Score has once again had a mid-cycle pause between 2 and 3. The cooling off over the past month has been very healthy, and similar to previous cycles.”
BTC needs to reclaim $69K to confirm breakout
Although the cryptocurrency markets have shown encouraging price gains this week, it’s important to note that these improvements do not yet signify the conclusion of the ongoing correction, as market depth has lessened. Consequently, there is a higher likelihood of continued price fluctuations, Jag Kooner, Bitfinex’s head of derivatives, cautioned in an interview with CryptoMoon.
“While we broke out of our lower timeframe range, it is important to remember that after a mass liquidation event amounting to over $2 billion in liquidations in 2 days starting April 12th, the market depth is considerably lower than a few weeks ago. This means there is a lower open interest and fewer spot orders, so it’s easier for smaller orders to move the market.”
Kooner expressed his confidence in Bitcoin’s price fluctuations in the near future. However, he issued a cautionary note, indicating the possibility of another price crash due to increasing market leverage.
According to Haralampiev from Nexo, Bitcoin must surpass the $69,000 threshold in order to make a definitive advance towards new record-breaking prices.
“Key levels to confirm the bullish sentiment and price movement are in the $69,000 – $70,000 bracket. Eventually, price action above these levels could lead to an attempt from BTC to break out to all-time high levels, should market sentiment and positioning continue to intensify.”
At the current price of around $67,000, Bitcoin is encountering strong opposition from investors holding short positions, amounting to approximately $553 million in total across all trading platforms.
Approximately $1.12 billion in short positions could be closed out if Bitcoin surpasses $69,000, based on Coinglass data.
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2024-04-22 22:30