- If BTC manages to rise, the next target could be $60,000.
- Buying sentiment around BTC remained dominant.
Bitcoin [BTC] It caught investors off guard when it performed bullishly overnight, allowing it to cross the $56K mark.
According to CoinMarketCapBitcoin’s value has increased by almost 9% in the last 24 hours alone.
Bitcoin rises above $56K
AMBCrypto had previously reported that the possibility of BTC’s price becoming volatile was high as a key indicator reached levels historically followed by bull rallies.
However, after crossing $56,000, the coin’s price fell below that level.
At the time of writing, BTC was trading at $55,798.83 with a market cap of over $1.1 trillion.
The price increase was supported by a more than 200% increase in BTC trading volume, which set the stage for the bull rally.
Despite the enormous price increase, buying pressure on the currency remained high. Particularly crypto analyst Axel marked that Bitcoin’s weekly outflows were strongly green, a trend that had followed for the past year.
Source:
AMBCrypto then analyzed BTC’s on-chain metrics to check whether bullish sentiments would remain high.
We found that, according to CryptoQuantBTC’s foreign exchange reserves fell, meaning selling pressure was low at the time of writing.
Additionally, the Miners’ Position Index (MPI) revealed that Bitcoin miners sold their holdings within a moderate range compared to their annual average.
Other than that, buying sentiment seemed dominant overall as the king coin’s Coinbase premium was in the green. For example, at the time of writing, American investors were actively buying BTC.
Source: CryptoQuant
Is $60,000 the next goal?
If the king of cryptos manages to maintain its bullish momentum, investors might as well witness a higher price level of BTC, with the $60,000 mark as the next target.
To find out if BTC still has obstacles ahead, AMBCrypto took a look at the liquidation heatmap.
We found that the road ahead looked quite optimistic for BTC, as not much BTC would be liquidated before the $60,000 mark. If the price action continues northward, the resistance BTC may face will be near $61K.
But either way, BTC needs to break above $57,000 to support its bull rally.
Source: Hyblock Capital
Next, AMBCrypto examined Bitcoin’s daily chart, which showed that the MACD showed a bullish crossover, indicating further price appreciation.
Read Bitcoins [BTC] Price prediction 2024-25
However, the rest of the indicators appeared bearish. For example, the Relative Strength Index (RSI) was in the overbought zone.
Moreover, the price of BTC reached the upper limit of the Bollinger bands, indicating that there were chances that BTC’s bull rally would come to an end soon.
Source: TradingView