• 28 May, 2024
Market News Markets

Bitcoin’s Surge to $70,000 Imminent, Here’s Why

Bitcoin is experiencing a surge in trading activity, with massive orders totaling over $400 million placed between $66,000 and $67,000. As highlighted by Daan Crypto, an analyst, these substantial orders present a significant obstacle for the price to overcome, as breaching them could trigger a quick fill, potentially leading to further upward momentum. 

This coincides with the formation of an inverse head-and-shoulders pattern, a bullish reversal setup that suggests a possible bounce in Bitcoin’s price trajectory, as per MikybullCrypto, a prominent analyst. 

According to analysts, this pattern, coupled with other technical indicators, could propel Bitcoin toward its next key price level of $70,000. It is an inch closer to surpassing its current all-time high of $74,580.

Bitcoin has experienced a significant jump in value in the last 24 hours, with the price going up by 6.37% to reach $65,844.70. This boom is coming along with an upsurge in trading volume, which has surged by almost 60%, suggesting a highly bullish market.

Currently, Bitcoin’s initial support level is around $62,000, with historical data showing a pattern of price corrections stabilizing around this point. Another critical support level sits near $61,000, acting as a robust barrier against further price declines during market downturns.

The immediate resistance level for Bitcoin is observed at $66,000, representing the upper boundary of the current price movement. If Bitcoin manages to surpass this resistance, the next significant hurdle lies around $67,500, posing a challenge for sustained upward momentum.

With a market capitalization of $1.3 trillion, Bitcoin is still maintaining its paramount place in the cryptocurrency market. The volume-to-market cap ratio scores a healthy 3.24%, which represents a large trade volume compared to its market size.

Bitcoin/USD 1-day price chart, Source: Trading view

The 1-day Relative Strength Index (RSI) reads 56.49, signaling neutral territory and implying the possibility of both upward and downward movement in the near future. Moreover, Bitcoin’s price is currently above both the 100 and 200 Exponential Moving Averages (EMAs), indicating bullish momentum. The Moving Average Convergence Divergence (MACD) trading above the signal line further suggests upward momentum in the short term.

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