Key Points
- Bitcoin (BTC) is showing signs of an upcoming rally after an 8% price correction.
- Large transaction volume by whales and investors surged by 7.85%, signaling a bullish outlook.
Bitcoin (BTC), the leading cryptocurrency by market capitalization, seems to be preparing for an upward surge following an 8% price drop in recent times.
After breaking out of the descending channel pattern on 28 October, BTC experienced an 8% rise. The recent decline seems to be a price adjustment, which bodes well for the anticipated rally.
Bitcoin Price Analysis and Key Levels
Technical analysis suggests that the cryptocurrency is encountering resistance from a declining trendline on a four-hour timeframe. If Bitcoin does rally, it’s highly likely that it could overcome this hurdle.
If BTC surpasses this trendline and a four-hour candle closes above $70,000, the asset could potentially soar to a new all-time high. However, this bullish scenario will only materialize if Bitcoin can maintain support above the $67,500 level.
As of writing, BTC seems to be trading above its 200 Exponential Moving Average (EMA) on both the four-hour and daily timeframes, indicating a possible uptrend.
Bullish On-Chain Metrics
In line with this bullish outlook, there seems to be an increase in participation from whales and investors. According to on-chain analytics firm IntoTheBlock, BTC’s large transaction volume has spiked by 7.85% over the past 24 hours, which could potentially drive the asset’s price up.
Furthermore, BTC’s Long/Short ratio stands at 1.20, indicating strong bullish sentiment among traders. Its Open Interest also rose by 2.9% over the last 24 hours, suggesting increased interest and the creation of new positions by traders.
Analysis of Coinglass data reveals that 55% of top traders are holding long positions, while 45% are holding short positions.
At press time, Bitcoin was valued at $69,100, appreciating by nearly 1.1% over the last 24 hours. Its trading volume also skyrocketed by 45% during the same period, reflecting heightened participation from traders and investors.
