Bitcoin attained another ATH but retraced within no time. Let us find out its current situation and what market players should expect next.
Bitcoin sustained retracements after its recent record highs. Though the somewhat negative actions, analysts believe the token corrected to alleviate leverage, cool the overbought case, and build its structure following a massive rally over the previous three weeks. That came after the leverage ratio, funding rates, and open interest recorded elevations.
For now, Bitcoin seems to stabilize around the $60,000 support, a positive gesture. With the current selling momentum, BTC has chances to close the week beyond $64,800.
BTC’s Short-Term Technical Indicator
Bitcoin needs to hold the $60,000 level to support the optimistic narrative. That way, it can create a cup-handle, retest $64,800, and rise towards $70,000, then $80,000. Meanwhile, if the coin closes under $60,000, it will lead to a short-term bearish gesture before the asset plummets to $59,700, then $53,000. Meanwhile, Bitcoin might secure support around the 21-day exponential moving average.
Also, the $50,000 level serves as a strong on-chain and technical support, which is somewhat comforting if the asset sees further liquidations. Bitcoin has a higher probability of exploring $53,000 (Sep’s high) if it records pullbacks. Breaching beneath this level may catalyze more downward risks, challenging bulls.
The BTC structure shows that the coin is at a level that accelerated uptrend, though with shakeouts. In the near term, the hourly price chart shows an upcoming bullish divergence. However, the leading cryptocurrency needs to hold $60,000 and $59,600 to validate its higher highs.
On-chain metrics suggest massive bullishness for BTC. The asset’s Mean Coin Age still trends higher for five months now. It plunged for two days recently but resumed the uptrends within no time. That confirmed long-term holders have no steady distribution trends as Bitcoin touched a new ATH.
Conclusion
Bitcoin saw an impressive rally over the previous three weeks. Meanwhile, derivatives leverage increased significantly. With that, the short-term retracement might be an opportunity for the crypto market. However, the crypto needs to secure support at $60,000 and $53,000 for a higher low.
Meanwhile, the on-chain and fundamentals trends depict bullishness. Moreover, there’re no aggressive distribution signs. That indicates possible uptrends. Bitcoin might retest $64,800 before breaking out towards $70,000, then $80,000. Though volatility might surge in the upcoming months, bulls will remain in control.
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