- If BTC manages to move up, the next target might be $60K.
- Buying sentiment around BTC remained dominant.
Bitcoin [BTC] caught investors off guard as it showcased a bullish performance overnight, which allowed it to cross $56K.
According to CoinMarketCap, Bitcoin’s value surged by nearly 9% over the last 24 hours alone.
Bitcoin rises above $56K
AMBCrypto had earlier reported that the possibility of BTC’s price turning volatile was high, as a key indicator reached a level that had historically been followed by bull rallies.
However, after crossing $56K, the coin’s price dropped below that level.
At the time of writing, BTC was trading at $55,798.83 with a market capitalization of over $1.1 trillion.
The price hike was backed by a more than 200% increase in BTC’s trading volume, acting as the foundation of the bull rally.
Despite the massive hike in price, buying pressure on the coin remained high. Notably, crypto analyst Axel highlighted that Bitcoin’s weekly outflow was strongly green, a trend it had followed throughout the last year.
Source: X
AMBCrypto then analyzed BTC’s on-chain metrics to check whether bullish sentiments would remain high.
We found that, as per CryptoQuant, BTC’s exchange reserve was dropping, meaning that selling pressure was low at press time.
Additionally, the Miners’ Position Index (MPI) revealed that Bitcoin miners were selling holdings in a moderate range compared to their one-year average.
Apart from that, buying sentiment at large looked dominant, as the king coin’s Coinbase premium was in the green. Thus, U.S. investors were actively buying BTC at press time.
Source: CryptoQuant
Is $60K the next target?
If the king of cryptos manages to maintain its bullish momentum, investors might as well witness BTC’s price touch higher price levels, with the $60K mark as the next target.
To find out whether BTC has any roadblocks ahead of it, AMBCrypto took a look at its liquidation heatmap.
We found that the road ahead looked pretty optimistic for BTC, as not much BTC would get liquidated before the $60K mark. If the northbound price action continues, the resistance BTC might face will be near $61K.
But regardless, BTC needs to go above $57K to sustain its bull rally.
Source: Hyblock Capital
Next, AMBCrypto examined Bitcoin’s daily chart, which showed that the MACD displayed a bullish crossover, hinting at a further price rally.
Read Bitcoin’s [BTC] Price Prediction 2024-25
However, the rest of the indicators looked bearish. For example, the Relative Strength Index (RSI) was in the overbought zone.
Additionally, BTC’s price touched the upper limit of the Bollinger bands, suggesting that there were chances of BTC’s bull rally coming to an end soon.
Source: TradingView
