- Analysts believe the world’s largest cryptocurrency could hit $78,000 next
- Buying pressure has increased lately, indicating an impending price increase
After dropping to $60,000, Bitcoin [BTC] Bulls have regained control of the market over the past 24 hours. What now? Some analysts believe that the world’s largest cryptocurrency could soon chart a path to $78,000.
Following the path of Bitcoin
AMBCrypto reported earlier that Bitcoin has been in a consolidation phase lately. In fact, the founder and CEO of CryptoQuant Ki Young Ju noted that we are on track for the longest sideways price action in a half year.
Moreover, Ali, a popular crypto analyst, also shared one tweet revealing the possible path of BTC. According to the tweet, the price of BTC is consolidating within a channel. While the coin initially fell to $60,000, it subsequently reached $66,000 on the charts.
After this, the coin plummeted again to $57,000. At the time of writing, Bitcoin was showing signs of recovery as its value rose 3% in the last 24 hours alone.
If this newly acquired bullish momentum continues, it could be the start of the road to $78,000.
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The path that BTC has ahead of it
Since the aforementioned analysis pointed to the possibility of a breakout towards $78,000, AMBCrypto planned to check BTC’s on-chain data. According to our analysis of Glassnode’s data, Bitcoin has just broken above its potential market bottom.
If the Pi Cycle Top indicator is to be believed, the chances of Bitcoin rising above its current ATH are high right now. This may be the case, especially since the metric underlined a possible market top of $112,000.
Source: Glassnode
Bitcoin’s NVT ratio also fell over the past week. A decline in the measure means an asset is undervalued, indicating that a bull run may begin soon.
Apart from this, AMBCrypto’s analysis is of CryptoQuant’s facts revealed another bullish signal. Bitcoin’s foreign exchange reserves have fallen. What this suggested was that buying pressure on BTC has increased – a finding that often results in price increases.
Source: CryptoQuant
Everything also seems quite optimistic in the field of derivatives at the moment.
For example, the coin taker’s buy/sell ratio turned green. This clearly meant that buying sentiment among Futures investors was stronger. Moreover, the currency’s financing rate also increased.
Read Bitcoins [BTC] Price prediction 2024-25
Finally, AMBCrypto checked Bitcoin’s daily chart to find out if any crucial resistance levels lie ahead before retesting its ATH.
We found that Bitcoin may be on the right track as it appeared to be approaching resistance near $65.4k. A successful breakout would push the coin towards $68k. If the coin manages to jump above that, investors could see BTC retest its ATH.
Source: TradingView