bitcoin has experienced a bullish week, rising 6% since Wednesday, generating excitement among analysts and investors who believe this could be the start of the next big rally.
The last significant rally, from January to March, boosted the price of bitcoin by 91%, approaching all-time highs. Now, market participants are optimistic that a similar trend could develop in the coming weeks, which could drive the price to unprecedented levels.
CryptoQuant on-chain analyst Axel Adler has shared revealing data suggesting that btc's current momentum is more than just a temporary boost. According to Adler, key on-chain metrics point to a strong accumulation phase, which historically precedes significant price appreciation.
With this renewed bullish sentiment, the market is closely monitoring btc's performance in the coming days. If the price can maintain its upward trajectory and break through key resistance levels, it could usher in a powerful new rally. Investors are eager to see if btc can replicate its past performance and reach new heights.
Analyst Expects 'Longer' bitcoin Rally
bitcoin has seen a notable 25% price increase over the past three weeks, fueled by the Federal Reserve's recent interest rate cuts. This major price move has reignited optimism among analysts and traders, many of whom are predicting a new bitcoin rally. Daily price action currently supports this outlook, confirming a bullish trend as bitcoin continues to rise.
Prominent crypto analyst Axel Adler recently x.com/AxelAdlerJr/status/1839559726637474172″ target=”_blank” rel=”noopener nofollow”>shared his analysis on xnoting that the average bitcoin rally this year has lasted around 25 days, compared to an average of 35 days over the past 15 years.
According to Adler, this shorter duration is the minimum expectation for the current market cycle. However, with favorable macroeconomic conditions, he believes a 100-day rally is entirely possible. He clarified that this forecast is based on his intuition rather than concrete data, highlighting the unpredictable nature of the crypto market.
As bitcoin price approaches higher supply levels of around $70,000, investors are watching closely. This key resistance level has not been tested since late July. A successful push above $70,000 would not only validate the current rally but also set the stage for a possible challenge to the all-time highs.
The recent surge has sparked excitement, but many remain cautious, waiting to see if bitcoin can maintain its momentum and surpass this crucial threshold. If bitcoin can maintain its upward trend and surpass these levels, it could signal the start of a powerful and extended rally, bringing renewed attention and capital to the cryptocurrency market.
btc price tests crucial supply
bitcoin is currently trading at $66,065, having broken through the daily 200 moving average (MA) at $63,797 and closed above it for two consecutive days. This decisive move indicates strong bullish momentum and has brought renewed optimism to the market.
The price is now flirting with higher supply levels, and a rise past the $70,000 mark could trigger a wave of demand, which could spark fear of missing out (FOMO) among traders and investors. Such a breakout would likely attract more capital into the market, fueling the rally further.
However, caution is warranted as bitcoin must maintain its position above the 200 daily MA to maintain this bullish outlook. Failure to hold above this critical level could lead to a pullback, testing areas of lower demand around $60,000. This would provide an opportunity for bulls to accumulate ahead of the next leg higher, but could also introduce uncertainty and hesitation into the market.
For now, all eyes are on bitcoin's ability to continue its upward momentum and break through the $70,000 resistance, which would solidify its position in a confirmed uptrend and potentially set the stage for a new all-time high in the coming weeks.
Featured image of Dall-E, TradingView chart
