Key Points
- Bitcoin is steadily approaching the $62k mark, indicating a potential bull rally.
- Despite positive signs, a correction could see the cryptocurrency drop to $54k.
Bitcoin’s trajectory has been promising, with the cryptocurrency slowly inching towards the $62k mark once again. The buying pressure on the king of crypto has been ramping up, which could potentially fuel a bull rally in the near future.
Bitcoin’s Steady Climb
Despite low price volatility over the past few days, Bitcoin has been subtly reaching for the $62k resistance level. To put it in numbers, Bitcoin’s price saw a 1.6% increase in the last 24 hours and was trading at $61,992.73 at the time of writing.
A popular crypto analyst, Ali, shared a tweet indicating an intriguing development. According to his tweet, Bitcoin’s Taker buy/sell ratio experienced a surge on OKX, signalling a rise in aggressive buying and potential upward momentum.
Signs of a Potential Rally
Analysis of data from CryptoQuant showed that Bitcoin’s net deposit on exchanges was low compared to the average of the last seven days. This suggests an increase in buying pressure on the coin. Furthermore, Bitcoin’s Korea Premium indicated that Korean investors are considering buying the coin, which could potentially lead to a price hike.
However, not all indicators are pointing towards a bull run. For instance, Bitcoin’s Coinbase Premium was in the red at the time of writing, suggesting a relatively weak buying sentiment among U.S investors.
Analysis of Bitcoin’s daily chart revealed that it was on the verge of testing its 20-day simple moving average (SMA). A leap beyond that could propel the coin towards the resistance at $65k.
On the flip side, Bitcoin has strong support near $60,365 and a fall below that could be detrimental for investors. In such a scenario, the coin could potentially drop to its support at $54k.
However, if Bitcoin successfully overcomes its resistance and moves beyond it, it wouldn’t be surprising to see the coin retest its all-time high. In an ideal scenario, Bitcoin could even hit a new all-time high in the coming weeks.