Bitcoin Price Analysis: Reclaiming This Level Will Open the Door for New All-Time High
Following a notable rebound, Bitcoin has surged toward the crucial 200-day MA of $88K. This price region is significantly important, as if the asset successfully reclaims it, it can exhibit a surge toward the ATH of $109K.
Technical Analysis
By Shayan
The Daily Chart
BTC has recently staged a notable bullish rebound after establishing strong support within the $75K$80K demand zone. This upward move has propelled the price toward a decisive resistance area around the $88K mark. This level is particularly important as it coincides with both the 100-day and 200-day moving averages, as well as the assets previous daily swing high, making it a formidable barrier for the bulls.
Given the confluence of resistance factors, Bitcoin is expected to enter a temporary consolidation phase around this region. However, if bullish momentum prevails and the price breaks above $88K with strength, the next major target would be the $93K zone. A successful breach of that could open the door to a rally toward the all-time high of $109K.
The 4-Hour Chart
On the lower timeframe, Bitcoin has broken above the upper boundary of the descending channel at $84K, signaling a bullish market structure shift. The breakout was followed by a pullback and continuation, confirming the breakouts validity.
The asset has now reached a key short-term resistance zone at $88K, aligning with the previous major swing high on this timeframe. If bulls manage to break above this level, the path toward the $93K resistance becomes increasingly likely. Conversely, failure to surpass this barrier could result in a consolidation phase below $88K before any further directional move.
On-chain Analysis
By Shayan
Analyzing recent funding rate behavior provides valuable insights into Bitcoins potential next moves. During the recent market-wide sell-off, both price and funding rates declined significantly, signaling a cooling of speculative activity in the futures market. This pattern mirrors the March to September 2024 period, a phase characterized by extended consolidation and sharp corrections that ultimately led to a robust bullish rally.
Now, with funding rates surging once again, it suggests that market participants are increasingly opening aggressive long positions. If this momentum persists, Bitcoin could reclaim the key $93K resistance level and potentially push toward its all-time high.
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Text source: CryptoPotato
