Bitcoin has made a robust recovery from the $65,000 level following a 6% decline from Monday’s peak of approximately $69,500. Despite this recent setback, BTC continues to follow a bullish trend that has been intact since early September. The recovery demonstrates resilience, aiding in the preservation of the bullish market structure.
Insights from CryptoQuant indicate that the average funding rate has progressively increased since September, signaling a rise in bullish sentiment as more traders become actively involved in the market.
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The next two weeks are critical for Bitcoin as it nears March’s all-time high. Investors and analysts are watching price movements closely as BTC gains momentum toward breaking crucial resistance levels.
Should the bullish trend persist, Bitcoin could be on the brink of another major rally, potentially leading to new highs soon. Conversely, a failure to maintain current levels could result in increased volatility.
Bitcoin Demonstrating Strength
Despite a recent decline, Bitcoin is strong above key demand levels, sustaining the overall bullish structure. Analysts and investors are keeping a close eye on price movements for confirmation that the current phase is merely a bullish consolidation before the next upward movement.
CryptoQuant analyst Axel Adler shared insights on X, emphasizing the BTC futures perpetual funding rate, which has seen steady growth since Bitcoin hit the $60,000 mark. This suggests an increasing number of bulls are entering the market, with optimism rising as the price ascends.
Adler indicated that bullish momentum is likely to persist as long as the funding rate continues to rise, confirming that BTC is experiencing a healthy consolidation stage. However, this doesn’t guarantee an immediate breakout; there remains a notable possibility that Bitcoin might trade sideways for a few days. Such sideways action could be crucial for building liquidity, enabling the market to gain strength for a more significant move.
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While market sentiment stays optimistic, particularly with the ongoing rise in bullish engagement, investors should brace for potential fluctuations. The next substantial price movement may go either way, but the consistent support above key levels serves as a positive sign for those anticipating further increases in Bitcoin’s price.
BTC Sustaining Key Demand
Bitcoin is holding firm above the $66,000 mark after securing support around $65,000. Currently trading at $67,100, the market appears to be in a consolidation phase, potentially taking some time before breaking above the significant $70,000 threshold.
To maintain bullish momentum, it’s crucial that the price stays above $65,000 or finds support near the $64,300 level, where both the 4-hour exponential moving average (EMA) and moving average (MA) converge.
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Should Bitcoin fail to hold these support levels, a deeper correction may occur, with the price potentially retracting to lower demand zones around $60,000. Conversely, if BTC can break and maintain its position above $70,000 in the coming days, this could catalyze a robust rally toward challenging all-time highs.
With investors closely watching critical support and resistance levels, the next few days will be vital in determining Bitcoin’s future trajectory.
Featured image from Dall-E, chart from TradingView
