Key Points
- Bitcoin’s price has increased by over 12% in the past week, hinting at a potential retest of its all-time high.
- However, metrics suggest that Bitcoin could face a price correction after reaching $72.3k due to a rise in liquidation.
Bitcoin [BTC] has seen a significant recovery, surpassing the $60k resistance mark. This increase in price indicates a possible retest of its all-time high in the near future.
However, the cryptocurrency may face a hurdle after reaching its ATH due to a predicted increase in liquidation.
Bitcoin’s Potential Retest of its ATH
According to data from CoinMarketCap, BTC’s price rose by double digits last week, specifically a 12% increase. In the last 24 hours alone, the coin’s price increased by more than 4%. Currently, BTC is trading at $62,543.73 with a market capitalization exceeding $1.23 trillion.
Crypto analyst, Ali, highlighted that if Bitcoin were to reach $72,300, $5.60 billion in short positions would be liquidated. This suggests a high probability of a price correction after reaching $72.3k. Generally, an increase in liquidation can cause short-term price corrections. Therefore, investors may see BTC’s growth slow or even drop for a few days after it retests its ATH.
Bitcoin’s Journey to $72k
AMBCrypto analyzed CryptoQuant’s data and found that Bitcoin’s exchange reserve has increased, indicating rising selling pressure. Its aSORP was red, suggesting that more investors were selling at a profit, a possible indicator of a market top during a bull market.
BTC’s NULP showed that investors were currently in a state of high unrealized profits. The fear and greed index revealed a reading of 69%, indicating a potential price correction. However, Bitcoin’s Rainbow Chart signaled a buying phase, suggesting that investors still have time to accumulate BTC before it reaches new highs.
A look at the coin’s daily chart showed that the Chaikin Money Flow (CMF) registered a decline, hinting at a price correction. However, the Relative Strength Index (RSI) remained bullish, moving further north from the neutral mark.
