The Bitcoin Price Rally Continues: Is $70,000 Within Reach?
The Bitcoin (BTC) price rally seems to be absolutely unstoppable as the largest digital asset surges by another 8% pretty close to hitting its new all-time highs. At press time, Bitcoin is trading at $68,200 with a market cap of $1.340 trillion. With this, BTC’s gains on the weekly chart exceed 22%. Interestingly, the Bitcoin price has already touched new all-time highs in EUR.
Bitcoin Price Rally to $70,000 And Above Likely?
Insights from on-chain data provider Santiment indicate that Bitcoin’s current market value of $68.0K is remarkably close to its all-time high (ATH) of $68.6K, with just a 0.9% difference. While there’s a notable presence of traders anticipating a surpassing of this value in the near future, overall sentiment remains relatively neutral compared to previous bullish cycles.
Unlike several meme coins and other altcoins experiencing recent surges, Bitcoin’s neutral sentiment actually presents a favorable scenario for sustaining a rally. This sentiment, coupled with a degree of disbelief among traders, suggests potential for liquidation of short positions, thus potentially propelling a rally beyond $70K and further.
- Bitcoin’s current market value is very close to its all-time high
- Traders are anticipating a surpassing of the all-time high in the near future
- Overall sentiment remains relatively neutral compared to previous bullish cycles
- Bitcoin’s neutral sentiment presents a favorable scenario for sustaining a rally
- Liquidation of short positions can potentially propel a rally beyond $70K and further
It’s crucial to monitor how sentiment may evolve once the anticipated all-time high is reached, as crowd perceptions can swiftly shift following significant resistance breaches. It’s worth noting that market movements often counter traders’ expectations, reports Santiment. Realized profits from Bitcoin (BTC) have surged to a three-year peak, indicating that average traders who have held onto their assets are reaping substantial rewards.
Also, as per the Liquidation data from CoinGlass, more than $134 million in liquidations took place on the Bitcoin network. Of these, nearly $105 million in short liquidations have taken place. On the other hand, extraordinary inflows into Bitcoin ETF continued last week.
- Sentiment may shift once the anticipated all-time high is reached
- Market movements often counter traders’ expectations
- Realized profits from Bitcoin have surged to a three-year peak
- $134 million in liquidations took place on the Bitcoin network
- Nearly $105 million in short liquidations occurred
- Extraordinary inflows into Bitcoin ETF continued last week
Is BTC Profit Booking Round the Corner?
On-chain analyst Checkmate has highlighted a notable trend in the Bitcoin market, noting the initiation of all-time high (ATH) distribution by long-term Bitcoin holders. While approximately 40-50% of this distribution can be attributed to the Grayscale Bitcoin Trust (GBTC), it serves as a testament to the adeptness of HODLers in interpreting market dynamics. The pattern reflects a classic investment strategy of buying low and selling high.
Like clockwork, long-term #Bitcoin holders have started their ATH distribution.
There is the nuance that a large proportion of this ~40-50% is from GBTC, but it goes to show that there are HODLers who can and do read the market very well.
Buying low, selling high. pic.twitter.com/Q6kGQHoOxR
— _Checkɱate (@_Checkmatey_) March 4, 2024
According to crypto analyst Ali Martinez, the TD Sequential indicator has signaled a sell indication for Bitcoin on the 4-hour chart. Historically, following such signals since February 15, Bitcoin’s price has declined by 1.5% to 4.7%. This pattern is worth close observation for short-term traders. Also, with Bitcoin holders in 100% profit, some profit booking could be around the corner.
- All-time high (ATH) distribution by long-term Bitcoin holders has started
- Approximately 40-50% of this distribution can be attributed to the Grayscale Bitcoin Trust (GBTC)
- The initiation of ATH distribution reflects a classic investment strategy of buying low and selling high
- The TD Sequential indicator has signaled a sell indication for Bitcoin on the 4-hour chart
- Following such signals since February 15, Bitcoin’s price has declined by 1.5% to 4.7%
- Profit booking could be around the corner with Bitcoin holders in 100% profit
Hot Take: The Future of Bitcoin’s Price
The Bitcoin price rally shows no signs of stopping as it inches closer to its new all-time highs. With Bitcoin trading at $68,200 and a market cap of $1.340 trillion, the gains on the weekly chart exceed 22%. While there is a possibility of Bitcoin surpassing its all-time high of $68.6K, overall sentiment remains relatively neutral compared to previous bullish cycles.
Traders are anticipating a rally beyond $70K and further, fueled by potential liquidation of short positions. It is important to monitor sentiment as it may shift once the anticipated all-time high is reached. Market movements often counter traders’ expectations, and realized profits from Bitcoin have surged to a three-year peak.
On the other hand, on-chain analysis suggests that long-term Bitcoin holders have started distributing their holdings. While this distribution can be attributed to the Grayscale Bitcoin Trust (GBTC), it reflects the adeptness of HODLers in interpreting market dynamics and buying low and selling high.
Short-term traders should pay attention to the sell indication signaled by the TD Sequential indicator on the 4-hour chart. Historically, following such signals, Bitcoin’s price has declined by 1.5% to 4.7%. Additionally, with Bitcoin holders in 100% profit, profit booking could be on the horizon.
As the Bitcoin price continues its rally, it remains to be seen whether it will reach $70,000 and beyond. Traders should stay vigilant and keep an eye on market dynamics as they navigate this volatile landscape.
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