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Bitcoin has rebounded strongly from the $65,000 mark after a 6% dip from Monday’s peak around $69,500. Despite the recent pullback, BTC remains in a bullish trend that has been going on since early September. This recovery shows resilience and helps maintain the bullish market structure.
Key data from CryptoQuant shows that the average funding rate has grown steadily since September, indicating that bullish sentiment is increasing as more traders are actively participating in the market.
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The next two weeks will be crucial for Bitcoin as it approaches its all-time high in March. Investors and analysts are closely watching price movements as BTC builds momentum toward breaking key resistance levels.
If the bullish trend continues, Bitcoin could be poised for another major rally, with the potential to reach new highs soon. However, any inability to maintain current levels could lead to new volatility.
Bitcoin shows strength
Despite a recent dip, Bitcoin remains strongly above key demand levels, maintaining its overall bullish structure. Analysts and investors are closely watching the price action to confirm that the current phase is simply a bullish consolidation before the next move higher.
CryptoQuant analyst Axel Adler shared data on Xhighlighting the perpetual funding rate for BTC futures, which has shown steady growth since Bitcoin reached the $60,000 level. This indicates that more and more bulls are entering the market, with optimism increasing as the price goes higher.
Adler suggested that bullish momentum is likely to continue as long as this funding rate increases, reinforcing that BTC is in a healthy consolidation phase. However, this does not guarantee an immediate outbreak. There is still a significant chance that Bitcoin will trade sideways in the coming days. Sideways price action can be essential for building liquidity, allowing the market to gather strength for a bigger move.
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While market sentiment remains optimistic, especially with the continued increase in bullish activity, investors should prepare for possible swings. The next major price action could go either way, but the steady support above key levels is a positive indicator for those betting on a further rise in Bitcoin’s price.
BTC remains above key demand
Bitcoin remains strong above the USD 66,000 level after finding support around USD 65,000. Currently trading at $67,100, the market appears to be in a consolidation phase and it may take some time to break above the crucial $70,000 level.
To maintain the bulls’ momentum, it is essential that the price remains above $65,000 or finds support around $64,300, where both the 4-hour exponential moving average (EMA) and the moving average (MA) align.
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If Bitcoin fails to maintain these support levels, a deeper correction can be expected, with the price possibly returning to lower demand zones around $60,000. On the other hand, if BTC manages to break and hold above $70,000 in the coming days, it could trigger a strong rally towards challenging all-time highs.
With investors keeping a close eye on key support and resistance levels, the coming days will be crucial in determining Bitcoin’s direction.
Featured image of Dall-E, chart from TradingView