Bitcoin’s price is edging closer to the $65,000 mark, with a recent 2.53% uptick bringing it to $64,503 over the last 24 hours.
Analysis from crypto expert Rekt Capital suggests that Bitcoin is on the cusp of ending the week above the 21-week Exponential Moving Average (EMA) of $61,360 for the second consecutive time, indicating a potential ongoing bullish trend. Maintaining levels above this point could validate a stronger upward movement for the cryptocurrency.
Aside from the 21-week EMA, Bitcoin is also inching towards breaking a significant downtrend line after being tested twice in the past fortnight.
Traders are eagerly watching for Bitcoin to hold ground above these critical markers, which could empower the bulls to drive the price beyond the $65,000 resistance threshold.
Crucial Levels to Watch for Bitcoin
The $61,360 level, aligned with the 21-week EMA, stands as key support for Bitcoin. A successful close above this mark might signal further upward movement, solidifying its bullish trajectory.
Conversely, the $65,000 barrier presents a notable resistance level for Bitcoin.
While historically challenging to breach, an upward move past $65,000 could clear the path for higher price targets in the weeks ahead.
Positive Market Indicators in Play
In the BTC/USDT daily chart, Bitcoin is oscillating between the upper and lower Bollinger Bands, with recent price action touching the middle band. This suggests a potential continuation of the uptrend, especially if prices break above the upper Bollinger Band shortly.
The Awesome Oscillator (AO) sits above the zero line, hinting at favorable market momentum. Nevertheless, the narrowing histogram bars hint at a possible slowdown in buying pressure.
This could imply an upcoming consolidation phase for Bitcoin. The Aroon indicator indicates a robust uptrend, with the Aroon-Up line standing at 71.43%, affirming the dominance of buyers.
MVRV Ratio Indicates a Bullish Wave
Currently at 2.75, Bitcoin’s Market Value to Realized Value (MVRV) ratio suggests the cryptocurrency is trading at a premium compared to its realized value. In the past, an MVRV ratio exceeding 3 often signaled overvaluation and potential market corrections.
With the ratio currently below this threshold, there appears to be room for further price appreciation.
The current MVRV ratio underlines the bullish sentiment in the market, but caution is advised, as a rising MVRV could point to increased odds of market corrections.
The past 24 hours depicted a 1.27% rise in this ratio, indicating a positive outlook among market participants regarding future price hikes.
As of now, Bitcoin boasts a market capitalization of around $1.27 trillion and a daily trading volume exceeding $28 billion. This surge in trading activity supports the prevailing bullish sentiment, as substantial price movements often coincide with heightened trading volumes.
Additionally, on-chain data from DefiLlama exhibits a Total Value Locked (TVL) of $1.084 billion and 609,844 active addresses over the last 24 hours, showcasing consistent user engagement and network interest.