Key Points
- Bitcoin’s price has been consolidating after a rise above $66k, with on-chain metrics appearing bullish.
- Indicators suggest Bitcoin may retest its all-time high and could potentially reach $80k in the coming weeks.
Bitcoin’s [BTC] price has seen a period of consolidation in recent days, following its rise above the $66k mark.
Despite this, there are indications that Bitcoin could be gearing up to retest its all-time high. If certain conditions are met, a new all-time high may not be an overly ambitious expectation.
Bitcoin’s Potential Upswing
The king coin has experienced volatility over the past 24 hours, with price fluctuations in both directions. However, this volatility has not enabled the coin to surpass the $66k resistance level once more.
A bearish divergence was noted on Bitcoin’s price chart, indicating a potential price drop. At the time of writing, BTC was trading at $65,692.70.
According to IntoTheBlock data, over 86% of BTC addresses were profitable, equating to 46.54 million addresses. Furthermore, BTC recently tested the bull market support, displaying a double bottom pattern.
This pattern often suggests a potential bull rally, leading to the possibility of Bitcoin retesting its all-time high. A breakout above this level could potentially push the coin towards $80k in the upcoming weeks.
On-Chain Data Analysis
On-chain data was examined to assess whether it supports the possibility of a price increase. The Pi Cycle Top indicator analysis revealed that BTC had surpassed its potential market bottom of $61k.
If this metric holds true, BTC could potentially reach a market top of $110k, albeit this appears somewhat ambitious.
The Bitcoin Rainbow Chart also showed optimism, with BTC’s price in the “BUY” zone, suggesting a good opportunity for investors to accumulate before any potential price surge.
The long/short ratio also increased, indicating more long positions in the market than short positions, suggesting a rise in bullish sentiment.
A significant amount of BTC is expected to be liquidated at the $66k mark, making it crucial for BTC to surpass this level and end its consolidation phase. A leap above $66k could potentially propel Bitcoin to new highs.