Key Points
- Bitcoin (BTC) crosses the $65k resistance level, hinting at a bullish market sentiment.
- BTC’s Funding Rate reaches a multi-month high, suggesting an increase in positive sentiment around the cryptocurrency.
Bitcoin (BTC) has once again surpassed the $65k resistance level after a brief dip below it. This recent price increase appears to have sparked a bullish sentiment in the market.
Even more encouraging is the fact that a key metric has reached a multi-month high, hinting at a substantial increase in positive sentiment surrounding the leading cryptocurrency.
Bitcoin Hits New Highs
Over the past week, BTC’s price has seen a positive trend, with an increase of over 4%. At the time of writing, this cryptocurrency was trading at $65,561.08, boasting a market capitalization of over $1.3 trillion.
As the price surged, so did the trading volume of BTC, which is generally a good indicator of an upcoming bull rally. In addition, BTC’s Futures reached new highs, with the Funding Rate hitting a multi-year high. An increase in the Funding Rate suggests an influx of money into the network, indicating a rise in bullish sentiment.
The Future of BTC
According to an analysis of Glassnode’s data, there’s an increased interest in BTC reflected in accumulation. The accumulation trend score, which reflects the relative size of entities actively accumulating coins on-chain in terms of their BTC holdings, increased from 0.2 in late September to 0.6 in October. A score closer to 1 indicates increasing buying pressure.
However, not all indicators were positive for BTC. Analysis of data from CryptoQuant revealed that BTC’s net deposit on exchanges was high compared to the previous seven-day average, suggesting an increase in selling pressure. Increased selling pressure often hints at a possible price correction.
Despite some negative indicators, BTC’s daily chart showed that after breaking a resistance, BTC turned the same level into its support. However, the Relative Strength Index (RSI) registered a downtick, suggesting that BTC might struggle to maintain its support.
