Key Points
Bitcoin [BTC] surprised investors with a bullish overnight performance, pushing it past the $56K mark. According to CoinMarketCap, Bitcoin’s value saw a nearly 9% hike in the last 24 hours.
After reaching $56K, Bitcoin’s price slightly fell below this level. The current trading price of Bitcoin is $55,798.83, with a market capitalization surpassing $1.1 trillion.
Trading Volume and Buying Sentiment
The increase in Bitcoin’s price was supported by a more than 200% rise in its trading volume. This significant rise acted as the basis for the bull rally.
Despite the substantial price increase, buying pressure on Bitcoin remains high. Crypto analyst Axel noted that Bitcoin’s weekly outflow was strongly green, a trend consistent over the past year.
On-chain metrics analysis revealed that Bitcoin’s exchange reserve was decreasing, indicating low selling pressure. Additionally, the Miners’ Position Index (MPI) showed that Bitcoin miners were selling holdings at a moderate range compared to their one-year average.
The dominant buying sentiment was also reflected in the positive Coinbase premium of the king coin. This suggests that U.S. investors were actively purchasing Bitcoin.
If Bitcoin maintains its bullish momentum, investors might see the price touch higher levels, with $60K as the potential next target. A liquidation heatmap analysis showed an optimistic path for Bitcoin, with not much liquidation expected before reaching the $60K mark.
However, Bitcoin needs to exceed $57K to sustain this bull rally. Analysis of Bitcoin’s daily chart showed that the MACD displayed a bullish crossover, indicating a potential further price rally.
Despite the bullish indicators, some metrics suggest a bearish trend. For instance, the Relative Strength Index (RSI) was in the overbought zone, and Bitcoin’s price hit the upper limit of the Bollinger bands, hinting at a possible end to the bull rally.
