Is BTC on the Verge of Exploding Beyond $69K ATH or is a Correction Imminent? (Bitcoin Price Analysis)

The cryptocurrency market is currently gripped by a sense of greed, evidenced by Bitcoin’s impressive bullish run, nearing its historical peak of $69K.

However, given the substantial supply clustered around this crucial threshold, the potential for corrective movements cannot be overlooked.

Technical Analysis

By Shayan

The Weekly Chart

A comprehensive analysis of the weekly chart highlights Bitcoin’s remarkable upward trajectory, fueled by growing interest and optimism among market participants. The recent surge, propelled in part by the approval of spot Bitcoin ETFs, has seen the price surpass several critical resistance levels, edging closer to the pivotal all-time high of $69K.

Despite this upward momentum, the $69K mark looms as a significant resistance area characterized by a substantial supply overhang.

As participants seek to capitalize on profits, heightened selling pressure may emerge, potentially triggering a temporary market reversal. Should a retracement occur, Bitcoin’s primary target on the weekly chart would be the significant support zone around $48K, aligned with the 100-day moving average. Nonetheless, the broader outlook suggests Bitcoin is poised to extend its bullish trajectory, eyeing new all-time highs in 2024.

Source: TradingView

The 4-Hour Chart

A closer examination of the 4-hour chart reveals the continuation of Bitcoin’s bullish momentum, with the price surging towards the $69K ATH. This surge underscores investors’ confidence, driving increased demand for the cryptocurrency.

However, caution is warranted as the price approaches the critical $69K barrier, which could pose a significant obstacle for buyers. Given the recent acceleration in bullish momentum, a minor correction seems likely in the medium term, potentially leading to pullbacks towards established support levels, including:

  • The upper boundary of the ascending channel
  • The 0.5 Fibonacci retracement level at $60K
  • The static support region around $58K

It’s important to note that the current bullish trend may briefly breach the $69K mark before initiating a corrective phase. Overall, the outlook for Bitcoin remains bullish, with the possibility of minor corrections along the way.

Source: TradingView

On-chain Analysis

By Shayan

The proportion of short-term investors, ranging from 1-day to 1-week holders, has surged to an impressive 10.62%, reminiscent of levels observed in October ’20, marking the onset of the previous cycle’s bull run, and October-November ’21, during the peak of that cycle. Moreover, last week witnessed Bitcoin price peaks in various countries, indicating a growing interest among new market investors.

This influx of short-term investors underscores a critical juncture in the market, likely paving the way for significant price movements. The current market scenario bears a resemblance to October ’20, signaling the potential beginning of another bullish rally.

Going forward, futures and on-chain data are expected to exhibit signs of overheating, fueled by continuous inflows of fresh capital and escalating prices. While the market may experience 20-30% corrections due to overheating, these will likely be temporary. Instead of viewing such corrections pessimistically, it’s crucial to maintain a bullish outlook as Bitcoin’s price is anticipated to surge to new all-time highs post-correction.

Source: CryptoQuant

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Cryptocurrency charts by TradingView.

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