Bitcoin’s price is currently on the rise, breaking previous all-time highs and reaching towards the $70K level. This surge has put cryptocurrency in uncharted territories, making it difficult to predict its future potential. Technical and on-chain analysis provide some hints into what might be next for BTC.
Psychological resistance levels at $70K and $80K are being considered as potential targets for Bitcoin in the upcoming months. However, the Relative Strength Index is displaying an overbought signal, indicating a possible correction or consolidation in the short term.
On the 4-hour timeframe, the recent consolidation of Bitcoin’s price becomes more evident. While the price is gradually climbing above the $69K resistance level, the Relative Strength Index is also entering the overbought region in this timeframe. This signals that the road ahead might be challenging, and a potential pullback to the $64K support level could signal a turning point towards higher prices.
Despite the bullish rally in Bitcoin’s price, market sentiment is currently euphoric. However, this extreme optimism could prove costly for BTC. The funding rates metric, which measures the aggressiveness of buyers and sellers, is currently showing highly positive values. These values are even higher than those seen during the previous all-time high, increasing the likelihood of a long liquidation cascade in the short term. This could potentially lead to a pullback or reversal in Bitcoin’s price.