Bitcoin (BTC) failed to break above $70,000 this week. However, readings from key on-chain indicators hint that Bitcoin price is bullish and are gathering strength for a new breakthrough.
Bitcoin Gives Buy Signals
Although the past week has not been the best for Bitcoin, various metrics still point to a long-term bullish outlook for the first cryptocurrency. The Reserve Risk indicator is currently in the green zone and is trying to leave it: this suggests that long-term holders will accumulate BTC, signaling an impending recovery. The growth potential is also confirmed by the divergence of Price Daily Average Addresses (DAA). This metric measures the discrepancy between the price of a cryptocurrency and the number of addresses interacting with it, helping to identify potential trends based on user activity.
When the price decreases and the number of active addresses increases, the indicator gives a buy signal. This is exactly what is happening currently.
BTC Price Forecast: Rebound Towards $70,000
In the coming days, the price of Bitcoin is likely to rise to $70,000 and above. The nearest important resistance will be at $71,370. The asset has repeatedly tried to break through this barrier since mid-March, but this time the growth of bullish sentiment will help it develop momentum of sufficient strength.
However, BTC will first have to deal with the less important resistance at $68,250. If the breakout attempt fails, the price of the main cryptocurrency will fall again to $65,300. Losing this level will deprive the bullish thesis of relevance and will lead to a test of the $61,730 level.
What The Future Holds for Bitcoin?
According to the Coinglass, which tracks the activity of traders on the largest exchanges, about 72,575 traders’ positions worth $226 million were liquidated on crypto exchanges per day. This means that traders trading with leverage did not have enough funds to secure them. More than $66 million in liquidations involved Bitcoin. On the other hand, according to Standard Chartered Bank, the value of Bitcoin will reach $250,000 in 2025. This bullish target is based on the demand for BTC ETFs launched in the US. These funds have received inflows of more than $11 billion since their launch two months ago, fueling Bitcoin’s rise.
Robert Kiyosaki, a well-known investor with more than 50 years of experience, also expanded his forecasts. He believes that Bitcoin will reach $300,000 by the end of 2024. However, the current market cycle surprises experts, and they openly call it unpredictable. Traditionally, after a Bitcoin correction, altcoins begin to grow first, but in this cycle, the segment of meme cryptocurrencies demonstrated a jump. Therefore, investors should check even expert forecasts and conduct their research on the Bitcoin market.
