Key Points
- Bitcoin’s price surged over 4% in the past week, trading above $70k.
- Indicators suggest that Bitcoin could potentially reach $87k soon.
Bitcoin [BTC] experienced a significant price surge this week, exceeding the $70k mark. This price increase sparked anticipation among the crypto community, with many predicting further price hikes.
However, a sell signal appeared on BTC’s chart, which could potentially impact its price. Despite this, Bitcoin’s price remained above $70k.
Bitcoin’s Bullish Momentum
Data from CoinMarketCap showed that BTC gained bullish momentum on the 3rd of June. Over the past seven days, the coin’s price spiked by over 4%. As of writing, BTC was trading at $71,091.06 with a market capitalization exceeding $1.4 trillion.
Ali, a well-known crypto analyst, highlighted a sell signal in a recent tweet, suggesting a potential price drop. However, this signal did not significantly affect Bitcoin’s price, as it continued to trade over $71k.
Analysis of CryptoQuant’s data indicated that investors did not sell off their BTC. The coin’s exchange reserve was decreasing, indicating high buying pressure. Furthermore, US investors exhibited a dominant buying sentiment, as evidenced by BTC’s green Coinbase premium.
Will Bitcoin’s Price Continue to Rise?
Analysis of Glassnode’s data suggested that BTC might continue its bull rally. According to the coin’s Pi Cycle Top indicator, BTC had not yet reached its market top. This suggests that BTC’s price might continue to rise to $87k before any significant price correction occurs.
The Pi Cycle indicator comprises the 111-day moving average and a 2x multiple of the 350-day moving average of Bitcoin’s price. BTC’s binary CDD was green, indicating that the movements of long-term holders in the past seven days were below average, suggesting a motive to hold their coins.
Additionally, BTC’s funding rate increased, indicating that long-position traders are dominant and willing to pay short-position traders. These metrics suggest a high likelihood of BTC continuing to rise.
BTC’s daily chart was analyzed to better understand its price direction. The technical indicator MACD displayed a bullish crossover. Furthermore, BTC’s Relative Strength Index (RSI) remained well above the neutral mark, suggesting potential price hikes in the future.
However, BTC’s Chaikin Money Flow (CMF) favored the bears, registering a recent downtick.
