Is Bitcoin Targeting $65K After 10% Weekly Surge? Analysis

Bitcoin has recently undergone a significant bullish reversal from a pivotal support zone identified by the 0.5 and 0.618 Fibonacci levels.

BTC is edging closer to the 100-day moving average at $61.6K, where it may face considerable selling pressure, indicating a possible short-term consolidation phase.

Technical Analysis

By Shayan

The Daily Chart

A detailed analysis of Bitcoin’s daily chart indicates that following a dip toward the critical support region between the 0.5 ($56.3K) and 0.618 ($52.1K) Fibonacci levels, the asset experienced significant buying pressure, prompting a sharp rebound. This bullish momentum resulted in approximately a 15% rise toward the 100-day moving average at $61.6K, a key resistance area.

The prevailing price action suggests that buyers have re-entered the market, seeking further upward movement. However, Bitcoin is currently trading within an essential range, facing resistance at $61.6K and support within the 0.5 and 0.618 Fibonacci levels, where a brief consolidation period may occur.

The 4-Hour Chart

On the 4-hour chart, Bitcoin executed a noticeable reversal at the $53K support level, which aligns with the 0.618 Fibonacci level, sparking a consistent upward trend. The failure to create a new lower low within the $52K-$54K range reflects strong buying interest, effectively stopping the previous bearish trend. Bitcoin is currently nearing a significant resistance area around $65K, which has historically been a tough level for the price.

If buyers succeed in pushing the price above this zone, the next target will be the $70K resistance level. However, should the price face rejection at $65K, a bearish pullback toward the $52K-$54K psychological support might ensue.

On-Chain Analysis

By Shayan

The MVRV (Market Value to Realized Value) ratio serves as a widely used indicator for evaluating overall market sentiment. This ratio is calculated by dividing the market cap by the realized cap. A reading below 1 indicates that most investors are experiencing losses, a condition frequently associated with the establishment of bear market bottoms over prolonged periods.

Recently, the MVRV ratio has dipped below its 365-day moving average, a historically significant threshold that has often signified the onset of market recoveries. While this situation could present a potential opportunity for long-term investors, it’s crucial to proceed with caution.

A significant recovery is typically indicated when the MVRV ratio rises back above this key level. In prior market cycles, such an increase has often marked a turning point, leading to renewed investor confidence. Nonetheless, current conditions, characterized by heightened fear and uncertainty, imply that any recovery could take longer to materialize. Therefore, maintaining a cautious and patient approach remains essential during this time.