Bitcoin has seen a strong increase of 6% this week, since Wednesday, sparking enthusiasm among analysts and investors who speculate that this may signal the start of a significant upward trend.
Following the last major surge between January and March, when Bitcoin’s value shot up by 91% close to its all-time highs, there is renewed hope in the market for a similar pattern to emerge soon, possibly leading to new record prices.
On-chain analyst Axel Adler from CryptoQuant has provided valuable insights suggesting that the latest momentum of BTC is not merely a fleeting event. Adler asserts that essential on-chain indicators are showing a robust accumulation phase, which typically precedes notable price increases.
As bullish feelings grow, traders will be keenly observing Bitcoin’s performance in the near future. A persistent upward trend, along with a breakthrough of critical resistance levels, could signal the beginning of a robust rally. Investors are hopeful for BTC to mirror its previous successes and climb to new heights.
Expectations for a Longer Bitcoin Rally
In the last three weeks, Bitcoin has increased by an impressive 25%, significantly attributed to the Federal Reserve’s recent cuts in interest rates. This change has rekindled optimism among market analysts and traders, with many forecasting a new Bitcoin rally as current price movements indicate a positive trend.
Renowned crypto analyst Axel Adler has recently expressed his views on X. He pointed out that the average Bitcoin rally this year spans about 25 days, contrasting with a longer average of 35 days over the past 15 years.
Adler believes that this shorter duration could be the minimum expectation for the ongoing market cycle. However, given the favorable economic backdrop, he asserts that a 100-day rally could very well be achievable. It’s important to note that this projection is largely based on speculation rather than solid data, reflecting the volatile nature of the crypto market.
As Bitcoin nears a supply threshold around $70,000, investors are paying close attention. This resistance level has not been tested since late July, and a successful breakthrough could not only confirm the current rally but also pave the way for a potential challenge to previous all-time highs.
The recent price uptick has generated enthusiasm; however, many remain cautious, watching to see if Bitcoin can hold its momentum and overcome this pivotal barrier. Success in maintaining the upward trend may signal the onset of a powerful and extended rally, drawing renewed interest and investment into the crypto space.
Bitcoin Price Testing Key Supply Levels
Currently, Bitcoin is valued at $66,065, having surpassed the 200-day moving average (MA) at $63,797 and maintaining that position for two consecutive trading days. This significant movement signals strong bullish sentiment and has revived optimism in the market.
The price is approaching higher supply levels, and a breakthrough above the $70,000 mark could incite a demand surge, possibly triggering fear of missing out (FOMO) among traders. Such a breakout would likely draw more capital into the market, further propelling the rally.
Nonetheless, vigilance is necessary, as Bitcoin needs to stay above the daily 200 MA to preserve this optimistic outlook. Falling below this threshold could lead to a retreat, testing lower demand zones around $60,000. While this scenario could allow for strategic accumulation by bulls, it might also introduce uncertainty within the market.
Currently, all eyes are set on Bitcoin’s capacity to sustain its upward momentum and surpass the $70,000 resistance. Achieving this could affirm its position in a definitive uptrend and potentially set the ground for hitting new all-time highs in the weeks ahead.
Featured image from Dall-E, chart from TradingView