Bitcoin has broken past the critical resistance level of $65,000 following several days of bullish price action and growing optimism after last week’s interest rate cut. This impressive move has excited analysts and investors, who are now speculating on higher prices in the coming weeks.
The recent rally, fueled by renewed confidence in the market, suggests that BTC may be poised for a strong rally.
Key data from CryptoQuant shows that the average profit of BTC investors has grown significantly but remains below previous highs, suggesting room for further growth. This upward momentum indicates positive sentiment volatility and the potential for BTC to challenge its all-time high.
As BTC continues to gain strength, market participants are closely monitoring its price behavior, anticipating whether this growth will lead to an extended rally.
As Bitcoin price action breaks through key resistance and shows signs of strength, the focus is now on whether this momentum will be sustained. Investors and traders are eager to see if BTC can maintain its upward trajectory, push past current levels and possibly set new records in the coming weeks.
The Bitcoin Network Has Room to Grow
Bitcoin has experienced an impressive 22% decline since the beginning of September, when both the price and the market price have been rising to near annual lows.
This significant change has sparked renewed optimism among investors, who believe that BTC may rally further in the coming weeks, especially after the Federal Reserve’s recent announcement. The shift in sentiment is evident, with many analysts predicting a bullish trajectory for the leading cryptocurrency.
Notable on-chain analyst and researcher CryptoQuant recently shared a compelling chart and report on X, highlighting a key metric that shows Bitcoin’s continued growth potential.
The data reveals that Bitcoin investors are currently making attractive profits, with an average daily profit of $571 million compared to a loss of $115 million. This equates to a total average profit of $456 million every day, a huge number that points to strong market confidence.
Interestingly, this gain, although large, is still a fraction of what was seen at the beginning of the year. In March, profits reached about 3.6 billion dollars per day, which shows that we still have a lot of room for growth in the current cycle.
This comparison shows that Bitcoin’s recent price appreciation is just the beginning of what could be a much bigger rally, as the market has not yet reached the same levels of excitement experienced during previous highs.
As BTC continues to gain momentum, market participants are watching closely to see if this trend will continue. Opportunities to earn more are evident. However, sustaining this upward trend will depend on whether Bitcoin can maintain its current momentum and navigate any potential resistance levels in the coming weeks.
BTC Technical Analysis: Price Levels to Hold
Bitcoin is trading at $65,637 after confirming the daily increase with a strong close above the 200 moving average (MA) at $63,823. The move has sparked positive sentiment among investors, who are now expecting higher prices in the coming days. Market participants see this confirmation as a bullish signal, indicating the potential for further gains.
If BTC can hold above the key $65,000 level and continue to close above the 1D 200 MA, the next major supply level to be tested is around $70,000. Breaching this resistance could trigger a strong rally, possibly pushing BTC to new all-time highs. However, price action should hold momentum to avoid a potential pullback.
On the other hand, if BTC fails to maintain its position above these levels, a healthy return to $60,000 may act as a consolidation phase. This will allow the price to test demand and form a solid base before any aggressive rally.
Such a correction would not necessarily be bearish, as it would provide a stable base for the next rise, allowing investors to buy at low levels before a possible breakout.
Featured image from Dall-E, chart from TradingView