Key Points
- Bitcoin’s price showed a small increase in the last 24 hours, sparking speculations of a potential bull rally.
- Despite the minimal price movement, several indicators suggest an increase in Bitcoin’s volatility in the coming week.
Bitcoin’s price has shown a slight upward trend over the past 24 hours. This minor increase has led to speculation among investors about the possibility of a fresh bull rally for Bitcoin.
Signs of a Bull Rally?
However, the growth has been marginal, leaving some to wonder if this is a hint of another price correction. Moustache, a notable crypto analyst, shed light on a few developments that could indicate a bull rally.
On April 30, Bitcoin’s price fell below $61k, but managed to bounce back, turning it into a support level and suggesting a further price increase. The analyst pointed out that Bitcoin’s price often rises sharply after rebounding from a key trendline.
Indicators of a Bull Run
Another bullish signal is the Relative Strength Index (RSI) breaking above a falling wedge pattern, indicating a potential increase in the RSI and supporting the possibility of a Bitcoin bull run.
Data from Glassnode also revealed that Bitcoin’s reserve risk is gaining upward momentum in the green zone. Historically, when this happens, Bitcoin’s price tends to show bullish momentum.
Despite these bullish indicators, Bitcoin’s price movement has been minor. At the time of writing, Bitcoin was trading at $63,368.70, with a market capitalization of over $1.25 trillion.
However, investors shouldn’t lose hope yet, as several metrics suggest a potential increase in Bitcoin’s volatility. Data from CryptoQuant shows that Bitcoin’s net deposit on exchanges is low compared to the last seven days’ average, suggesting low selling pressure.
Additionally, Bitcoin’s Coinbase premium is in the green, indicating that buying sentiment is dominant among U.S. investors. Several market indicators also suggest that Bitcoin could become volatile in an upward direction in the next week.
If Bitcoin does become volatile next week, it will be crucial for the coin to surpass the $66.9k resistance level. A successful breakout above this level could allow Bitcoin to reach $71k. If the bullish trend continues, Bitcoin could even surpass its all-time high in the coming days.
