Bitcoin’s price is displaying signs of finally breaking the previous all-time high to the upside, entering uncharted territories. Predicting its upside potential is becoming more challenging, but there are hints from technical and on-chain analysis. On the daily timeframe, the price is climbing toward the $70K level, with $70K and $80K being potential upcoming targets. However, the Relative Strength Index is signaling overbought conditions, indicating a potential correction or consolidation in the short term.
Looking at the 4-hour timeframe, the recent consolidation period becomes clearer as the price gradually climbs above the $69K resistance level. A longer-term rally may be on the horizon, but the Relative Strength Index is also entering the overbought region in this timeframe. This suggests that the road ahead for the BTC price could become more challenging. If a pullback occurs, the $64K support level may serve as a turning point for higher prices.
Bitcoin’s price has been rallying aggressively, leading to a state of euphoric market sentiment. However, extreme optimism could prove costly for BTC. The funding rates metric, which measures the aggressiveness of buyers and sellers, is showing highly positive values. These values are even higher than those seen during the previous all-time high, raising the probability of a long liquidation cascade in the short term. This could result in a pullback or reversal in the price of Bitcoin.
While Bitcoin’s price continues to break new highs, caution is warranted as signs of overbought conditions and extreme market sentiment emerge. Traders and investors should be mindful of the potential risks ahead, including the possibility of a pullback or reversal in price. Technical and on-chain analysis can provide valuable insights, but market sentiment and funding rates should also be considered when making decisions in the volatile cryptocurrency market.Bitcoin’s price is finally showing signs of breaking the previous all-time high to the upside. Cryptocurrency is entering uncharted territories, and predicting its upside potential becomes a lot more challenging. However, there are some hints interpreted from technical and on-chain analysis. By TradingRageOn the daily timeframe, the price is finally breaking the previous all-time high to the upside, with the price climbing toward the $70K level. The psychological resistance levels of $70K and $80K might be the upcoming targets for BTC in the coming months. Yet, the Relative Strength Index displays a clear overbought signal, which can point to a potential correction or consolidation in the short term. Looking at the 4-hour timeframe, the recent consolidation becomes much more clear. The price is gradually climbing above the $69K resistance level, and a longer-term rally might soon begin. Yet, the Relative Strength Index is also entering the overbought region in this timeframe, indicating that the road ahead might get bumpier for the BTC price. If it goes through a pullback, the $64K support level might be a potential turning point toward higher prices. By TradingRageWhile Bitcoin’s price has been rallying aggressively after making a new all-time high, market sentiment is in a euphoric state. However, this extreme optimism might prove costly for BTC. This chart demonstrates the funding rates metric, which measures whether the buyers or sellers are executing their orders more aggressively. Positive values indicate bullish sentiment, while negative values are associated with bearish sentiment. It is evident that the funding rates have been displaying highly positive values recently. The metric is even showing values higher than those witnessed during the previous all-time high. As a result, the probability of a long liquidation cascade seems very high in the short term, which could lead to a pullback or reversal.
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