BTC Tops $72K as Bulls Aim Higher, What’s the Next Target? (Bitcoin Price Analysis)

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The cryptocurrency market is currently experiencing a phase marked by considerable greed. Bitcoin achieved a remarkable milestone by surging to a new all-time high of $72.2K.

This achievement has positioned all Bitcoin participants in profit territory, fueling expectations of further upward movement in the currency’s value. However, amidst this exuberance, the possibility of a corrective phase remains plausible.

Technical Analysis

By Shayan

The Daily Chart

A thorough examination of the daily chart showcases Bitcoin’s impressive rally, surpassing a significant resistance zone denoted by its previous all-time high of $70K and reaching a new peak at $72.2K.

This surge is a direct consequence of heightened market demand, resulting in a substantial influx of capital into the Bitcoin ecosystem.

Despite this upward trajectory, the price entering the $70K-$80K range introduces the potential for heightened volatility, with profit-taking likely to exert selling pressure, possibly triggering a temporary consolidation phase. Additionally, concerns arise from the emotional activity in the futures market, characterized by aggressive long positions, which could precipitate a short-term downturn via a long-squeeze event.

Nevertheless, in the event of a retracement, Bitcoin’s primary support levels on the daily chart are situated within the $61.4K to $58.8K range. Nonetheless, the overarching outlook remains bullish, with Bitcoin setting its sights on the psychologically significant $80K price threshold.

Source: TradingView

The 4-Hour Chart

A closer analysis of the 4-hour chart reaffirms Bitcoin’s bullish momentum, as the price has successfully retraced to the upper boundary of the broken channel and formed a pullback before resuming its upward trajectory.

This surge has seen the price consistently surpassing previous swing highs, indicative of robust investor confidence and heightened demand for the cryptocurrency.

However, caution is advised as Bitcoin continues its aggressive upward trend, coinciding with a notable phase of greed in the market, historically associated with unforeseen downturns and significant long liquidation events.

Despite the anticipation of heightened volatility, with the price eyeing the crucial $80K mark, the potential for corrections remains a plausible scenario in the medium term.

Source: TradingView

On-chain Analysis

By Shayan

The Bitcoin realized price metric has soared to new highs, reflecting the recent remarkable peaks in Bitcoin’s market price. This particular metric, derived from on-chain data, offers a glimpse into the average acquisition cost of all Bitcoins circulating within the blockchain. Its computation relies on data pertaining to unspent transaction outputs, making it a reliable indicator of the collective investment worth embedded within the Bitcoin ecosystem. Presently, the realized price hovers around the $25,7K USD mark.

This surge in the realized price not only reflects substantial profitability for investors but also indicates a rapid decline in the number of unspent transaction outputs (UTXOs) in a loss position, now plummeting to a mere 1%.

This notable decrease underscores the significant gains enjoyed by Bitcoin holders, leading to a marked reduction in the proportion of Bitcoins held at a loss within the network.

In light of these developments, the outlook for Bitcoin appears decidedly optimistic, with expectations of sustained momentum towards new all-time highs in 2024.

Source: CryptoQuant

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