Is Bitcoin Aiming for $70K Soon After Recent Price Surge?

Recently, Bitcoin’s price has surpassed a crucial level and appears to be aiming for a new all-time high in the near future.

Technical Overview

By Edris Derakhshi (TradingRage)

The Daily Chart

In the daily chart, the price has successfully moved past the $64K threshold along with the 200-day moving average, which is situated around the same price point.

Given the RSI indicating strong bullish momentum, it’s likely that the cryptocurrency will keep its upward trajectory towards the $68K resistance zone shortly.

However, should a correction occur, the 200-day moving average is expected to provide support, helping to push the market back up.

The 4-Hour Chart

Examining the 4-hour chart, the price has been consistently forming higher highs and lows since bouncing off the $52K support level.

This bullish movement has created a distinct trendline, supporting Bitcoin for an extended period. If this trend remains unbroken, it is likely just a matter of time before the market touches the $68K mark.

Conversely, if the trendline is breached on the downside, a pullback to the $60K level could be expected.

On-Chain Insights

By Edris Derakhshi (TradingRage)

Bitcoin Short-Term Holder SOPR

Throughout the recent consolidation of Bitcoin’s price and slight corrections, numerous short-term holders, even those not recording a profit, became anxious and sold their holdings. This chart illustrates the Bitcoin Short-Term Holder SOPR, which gauges the ratio of profits and losses realized by short-term investors.

As indicated by the chart, the STH SOPR reached a new peak when the price first approached $70K, but it has swiftly declined over the past few months. Since July, short-term holders have been realizing losses, as the metric dropped below one. Nonetheless, with the recent surge in price, these investors are now beginning to realize profits once more.

While this behavior is typical in bull markets, if the selling pressure resulting from profit-taking is not counterbalanced by adequate demand, the price could decline again.