Key Points
- Bitcoin’s historical trend indicates a possible major price movement in the near future.
- On-chain metrics and high buying pressure suggest a potential price hike, despite recent bearish indicators.
Bitcoin has experienced a notable increase in buying pressure, despite some indicators shifting towards a bearish trend.
Historical Trend Indicates Potential Price Movement
In the past week, Bitcoin [BTC] has shown a bearish trend, but this may change in the coming days. Bitcoin’s historical trend suggests that investors may soon witness a significant price movement.
Previously, Bitcoin crossed the $64k mark, but this increase was short-lived. The cryptocurrency experienced a nearly 2% price correction in the last 24 hours, bringing it down to $63,117.53.
Crypto analyst Axel recently noted an interesting development. According to Axel, Bitcoin’s volatility has been compressing for the past six months, and an alert has appeared on the chart. This alert has only appeared five times in Bitcoin’s history, each time followed by a significant upward price movement. If history repeats itself, a new bull rally could be on the horizon.
On-Chain Metrics Suggest Potential Price Hike
On-chain metrics from Glassnode reveal that Bitcoin’s price has just jumped above its possible market bottom of $61.8k. If the Pi Cycle Top indicator is accurate, the upcoming bull rally could push Bitcoin towards a potential market top of $109k.
Despite the high buying pressure, not all indicators are in Bitcoin’s favor. Data from CryptoQuant shows that Bitcoin’s aSORP has turned red, indicating that more investors are selling at a profit. This could suggest a market top in the middle of a bull market.
Bitcoin’s daily chart shows that the cryptocurrency is currently facing resistance at $64.1k. If a price correction occurs, Bitcoin could drop to $62k. However, if a bull rally occurs, it will be crucial for Bitcoin to surpass the $64k-$65k range, which could result in a sharp increase in liquidation. This usually leads to short-term price corrections.
