Bitcoin has rebounded strongly from the $65,000 mark after a 6% drop from Monday’s high of around $69,500. Despite the recent pullback, BTC remains in an uptrend that has been in effect since the beginning of September. This recovery shows resilience, helping to maintain the market’s bullish structure.
Key data from CryptoQuant reveals that the average funding rate has been growing steadily since September, indicating that bullish sentiment is increasing as more traders actively engage in the market.
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The next two weeks will be crucial for Bitcoin as it approaches March’s all-time high. Investors and analysts are closely monitoring price movements as BTC gains momentum to break key resistance levels.
If the uptrend continues, Bitcoin May Be Poised for Another Significant Recoverywith the potential to establish new highs soon. However, any failure to maintain current levels could bring renewed volatility.
Bitcoin showing strength
Despite the recent drop, Bitcoin remains strong above key demand levels, maintaining the overall bullish structure. Analysts and investors are closely monitoring price action to confirm that the current phase is simply a bullish consolidation ahead of the next leg higher.
CryptoQuant Analyst Axel Adler data shared inhighlighting the perpetual funding rate of BTC futures, which has shown steady growth since Bitcoin reached the $60,000 level. This indicates an increasing number of bulls entering the market, with optimism increasing as the price rises.
Adler suggested that the bullish momentum will likely continue as long as this funding rate increases, reinforcing that BTC is in a healthy consolidation phase. However, this does not guarantee an immediate breakout. There is still a significant chance that Bitcoin could trade sideways in the coming days. Sideways price action can be essential for building liquidity, allowing the market to gather strength for a larger move.
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While market sentiment remains optimistic, especially with the continued increase in bullish activity, investors should prepare for potential fluctuations. The next big price action could come in either direction, but continued support above key levels is a positive indicator for those betting on further upside in Bitcoin’s price.
BTC Remaining Above Core Demand
Bitcoin is holding strong above the $66,000 level after finding support around $65,000. Currently trading at $67,100, the market appears to be in a consolidation phase and it may take some time for a breakout above the crucial $70,000 level.
For bulls to maintain momentum, it is essential that the price holds above $65,000 or finds support around the $64,300 mark, where both the 4-hour exponential moving average (EMA) and the 4-hour exponential moving average (MA ) align.
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If Bitcoin fails to maintain these support levels, a deeper correction could be expected, with the price potentially retracing to lower demand zones around $60,000. On the other hand, if BTC manages to break out and hold above $70,000 in the coming days, it could trigger a strong rally towards challenging all-time highs.
With investors closely monitoring key support and resistance levels, the next few days will be crucial in determining Bitcoin’s direction.
Featured image of Dall-E, TradingView chart