Key Points
- Bitcoin [BTC] has crossed the $65k resistance level, stirring bullish market sentiment.
- BTC’s Funding Rate has reached a multi-month high, indicating a rise in positive sentiment around the cryptocurrency.
Bitcoin [BTC] has managed to surpass the $65k resistance level, after a recent dip. This price increase has likely stirred bullish sentiment in the market.
Furthermore, a key metric has reached a multi-month high, suggesting a rise in positive sentiment around Bitcoin.
Bitcoin Reaches New Highs
Bitcoin’s price has seen positive changes over the past few days. The price has risen by over 4% in the last week.
At the time of writing, Bitcoin was trading at $65,561.08 with a market capitalization exceeding $1.3 trillion.
The trading volume of Bitcoin also increased as its price surged, which often serves as a foundation for a bull rally.
Simultaneously, BTC’s Futures reached new highs. Specifically, BTC’s Funding Rate touched a multi-year high.
An increase in the Funding Rate indicates more money flowing into the network, suggesting a rise in bullish sentiment.
What’s Next for Bitcoin?
Analysis of Glassnode’s data reveals that investors’ interest in Bitcoin is reflected in accumulation. BTC’s accumulation trend score rose from 0.2 in late September to 0.6 in October.
The accumulation trend score is an indicator that reflects the relative size of entities that are actively accumulating coins on-chain in terms of their Bitcoin holdings.
A score closer to 1 indicates rising buying pressure. However, not all indicators are in Bitcoin’s favor.
Data from CryptoQuant shows that Bitcoin’s net deposit on exchanges was high compared to the last seven-day average. This suggests that selling pressure has increased recently.
When selling pressure rises, it often hints at a potential price correction.
After breaking resistance, Bitcoin turned the same level into its support. However, the Relative Strength Index (RSI) registered a downtick, suggesting that Bitcoin might not hold its support.