bitcoin has broken through the critical $65,000 resistance level following several days of bullish price action and growing optimism following last week's interest rate cuts. This impressive move has excited analysts and investors, who are now speculating on even higher prices in the coming weeks.
The recent rally, fueled by renewed confidence in the market, suggests that btc could be primed for a strong uptrend.
Key data from CryptoQuant indicates that the average btc investor profit has increased significantly but remains well below previous highs, suggesting room for further growth. This upward momentum reflects a positive shift in sentiment and btc's potential to challenge its all-time highs.
As btc continues to gain ground, market participants are closely monitoring its price action, anticipating whether this rise will lead to a longer rally.
With bitcoin price action breaking through key resistance and showing signs of strength, attention now turns to whether this momentum will sustain. Investors and traders are eager to see if btc can maintain its upward trajectory, surpassing current levels and potentially setting new records in the coming weeks.
The bitcoin network has room to grow
bitcoin has seen a notable 22% rise since early September, when both price and market sentiment were hovering around yearly lows.
This major change has sparked renewed optimism among investors, who believe that btc could rally further in the coming weeks, especially following the recent announcement from the Federal Reserve. The change in sentiment is palpable, with many analysts projecting an upward trajectory for the flagship cryptocurrency.
A prominent on-chain analyst and CryptoQuant researcher recently shared a compelling x.com/AxelAdlerJr/status/1838579503347433883″ target=”_blank” rel=”noopener nofollow”>graph and report on xhighlighting a key metric that shows bitcoin's continued growth potential.
The data reveals that bitcoin investors are currently making impressive profits, with an average of $571 million in daily profits compared to $115 million in losses. This equates to an average net profit of $456 million per day, a substantial figure indicating strong market confidence.
Interestingly, these gains, while substantial, are still a fraction of what was seen earlier in the year. In March, realized profits peaked at around $3.6 billion per day, suggesting there is still considerable room for growth in the current cycle.
This comparison indicates that bitcoin's recent price appreciation is just the beginning of what could be a much larger rally, as the market has yet to reach the same levels of euphoria experienced during previous highs.
As btc continues to gain momentum, market participants are watching closely to see if this trend will persist. The potential for higher profits is evident. However, maintaining this upward trajectory will depend on whether bitcoin can maintain its current momentum and navigate any potential resistance levels in the coming weeks.
btc technical analysis: price levels to maintain
bitcoin is trading at $65,637 after finally confirming a daily uptrend with a solid close above the 200 moving average (MA) at $63,823. This move has sparked positive sentiment among investors, who now anticipate higher prices in the coming days. Market participants view this confirmation as a bullish signal, indicating the potential for further gains.
If btc can hold above the crucial $65,000 level and continue to close above the 1D 200 MA, the next major supply level to test is around $70,000. Breaking through this resistance could trigger a strong rally, which could take btc to new all-time highs. However, the price action must maintain momentum to avoid a potential pullback.
On the other hand, if btc fails to maintain its position above these levels, a healthy pullback to $60,000 could serve as a consolidation phase. This would allow the price to test demand and build a stronger foundation before any aggressive rally.
Such a correction would not necessarily be bearish, as it could provide a more stable foundation for the next bullish move, allowing investors to buy at lower levels before a possible breakout.
Featured image of Dall-E, TradingView chart
