Bitcoin Breaks Above $64,000: Bull Run to Continue?The price of Bitcoin (BTC) recently broke above the $64,000 mark, rising 1.89% in the past 24 hours
Bitcoin Breaks Above $64,000: Bull Run to Continue?
The price of Bitcoin (BTC) recently broke above the $64,000 mark, rising 1.89% in the past 24 hours. Its market cap reached $1.26 trillion, accounting for 56.7% of the cryptocurrency market. Bitcoin is currently trading at $64,066, up 1.94% on the day. Could this breakout signal a month of record highs for Bitcoin? Let's explore through technical analysis.
Daily Chart Analysis:
The daily chart displays a bullish reversal in the BTC price. The momentum is strong, starting with a morning star pattern and approaching the 200 EMA. Bitcoin has rallied 8.83% in the past four days, starting from a seven-day low of $58,867. Additionally, the 200-day EMA shows a double-bottom reversal, breaking through the 50% Fibonacci level at $63,847, providing further support for the bullish trend.
With the breakout of this bullish pattern, Bitcoin has broken through the key resistance level at the 50% Fibonacci and is poised to challenge the upper trendline. The upper trendline completed the bullish flag channel pattern, which encompassed the momentum over the past six months. The price has now breached this trendline, indicating a breakout from the bullish flag pattern, further strengthening the bullish signal.
Technical indicators also support the bullish outlook. The Supertrend indicator signals that the BTC price is maintaining an upside trend, while the MACD and signal lines have formed a bullish crossover, suggesting continued price gains in the near term.
4-Hour Chart Analysis:
On the 4-hour chart, the pullback-breakout-rally pattern is clearly visible. BTC price action has broken through the key resistance level at $63,560, the 61.80% Fibonacci level, with three consecutive bullish engulfing candles. Additionally, the huge divergence in the 4-hour RSI line supports the bullish case within the double-bottom reversal, indicating strong potential demand in the market.
The 4-hour Bitcoin candlestick chart shows a rebound from the 61.80% level after a pullback, reflecting a retracement and reversal after the second retest. Fibonacci levels on the 4-hour chart project short-term targets at $65,969, $67,684, and $69,865.
Derivatives Market Analysis:
As BTC price rallies, the derivatives market displays a positive change in the sentiment of leveraged traders. Bitcoin trading volume climbed 74%, approaching the $50 billion mark, indicating growing market participation. Furthermore, BTC open interest increased by 3.84%, surpassing $36 billion, suggesting that investors hold optimistic expectations for BTC.
Meanwhile, Bitcoin options open interest stands at $20.94 billion, up by 1.20%, with trading volume at $1.23 billion, a surge of 118.53%, also indicating market bullish expectations for BTC.
The BTC 24-hour long-short ratio stands at 1.064, reflecting an increase in long positions, a sentiment leaning towards bullish. Binance BTC traders maintain a similar long-short ratio, showing confidence in BTC price gains across both account and position perspectives.
Supporting the bullish data, the 24-hour liquidation stood at $53.18 million, representing a $408.2 million liquidation of short positions, further demonstrating a reduction in short positions, providing fuel for the BTC price rally.
Summary:
Based on technical analyses and derivatives market data, Bitcoin has the potential to continue its upward trajectory in the near term. Bullish signals on the daily and 4-hour charts, coupled with the increased long positions and liquidation of short positions in the derivatives market, suggest a positive market sentiment with potential for continued price challenges of the all-time high.
Disclaimer: The above analysis is for informational purposes only and does not constitute investment advice. Investing involves risk, and you should proceed with caution.
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