According to analysts Bitcoin It is moving towards new highs, but may also see harsher corrections based on recent charts.
This week, Bitcoin fell 10% after reaching a new intraday record. However, analysts believe it could achieve further upside.
According to analysts, while Bitcoin is on track to achieve even greater rises this year, investors should consider these fluctuations as healthy retreats.
According to Fairlead Strategies, Bitcoin has been testing the last resistance level at $64,900 at the weekly close since reaching $57,000 last week. The firm is looking for two consecutive weekly closes above this level to confirm the breakout.
“A breakout would be a long-term bullish development that leaves no resistance,” said Fairlead Strategies representative Katie Stockton. Stockton added that the long-term momentum is positive and there are no signs of exhaustion in the long-term upside.
However, Bitcoin’s support is at around $48,100, which represents a decline of about 30% from where BTC was trading on Thursday. Stockton suggested that there is a possibility that Bitcoin could give a sell signal next week. According to CryptoQuant, this support level varies BTC It is slightly higher than Bitcoin’s short-term realized price of $42,700, which represents the average cost at which holders purchased their Bitcoin.
The short-term realized price acts as a ceiling in bear markets and a floor in bull markets. JPMorgan also suggested last week that Bitcoin could fall to the $42,000 level after April, when Bitcoin-halving-related enthusiasm fades.
CryptoQuant shows that traders’ unrealized profit margins are above extreme levels at 52%, a 20% increase from last week. Julio Moreno, research manager at the crypto data provider, explained that this indicator acts as a price correction signal when it rises above 40%.
Moreno cited data showing that Bitcoin is in an “overheated bull” phase, with miners in “overpayment” territory and short-term Bitcoin wallet holders starting to sell to realize higher profit margins, as evidence of the potential for further corrections.
*This is not investment advice.
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