Following a recent dip to $60k, Bitcoin [BTC] has once again seen a resurgence in bullish activity over the past 24 hours. Could this be paving the way for a potential climb towards $78k in the near future?
Analyzing Bitcoin’s Trajectory
Recent reports have highlighted Bitcoin’s period of consolidation. Ki Young Ju, the Founder and CEO of CryptoQuant, observed that the current sideways movement could make this halving year witness the lengthiest consolidation phase.
Moreover, prominent crypto analyst Ali shared insights on Bitcoin’s trajectory, indicating a channel where the coin fluctuated between $60k and $66k before dropping to $57k and subsequently showing a 3% surge in value within a day.
If this positive momentum persists, it could signify the initial steps towards reaching the $78k mark.
The Future Path of BTC
Given the aforementioned projections of a potential rise to $78k, a deeper dive into Bitcoin’s on-chain data was deemed necessary. Analysis of Glassnode’s data unveiled a recent breach of Bitcoin’s possible market floor.
According to the Pi Cycle Top indicator, chances are high for Bitcoin to surpass its current All-Time High (ATH), with a speculated market peak around $112k.
Furthermore, Bitcoin’s NVT ratio has exhibited a decline, indicating an undervalued status and a potential resurgence into a bullish trend.
Additional analysis of CryptoQuant’s data pointed out a significant drop in Bitcoin exchange reserves, hinting at increasing buying pressure on BTC, a factor often associated with price surges.
Optimism is also noticeable in the derivatives market, with notable improvements in sentiment. The taker buy/sell ratio has turned bullish, reflecting stronger buying tendencies among Futures traders, alongside a rise in the coin’s funding rate.
Examining Bitcoin’s daily chart for potential resistance levels preceding an ATH retest, it appears that the coin is progressing positively towards overcoming resistance near $65.4k. A successful breach could propel Bitcoin towards $68k, setting the stage for a possible return to its ATH.