Bitcoin is at a crucial juncture after weeks of aggressive corrections and disappointing price action. Currently testing a key psychological level of $60,000, the cryptocurrency is facing a critical phase where investor sentiment is shifting from fear to cautious optimism.
This change comes as many are anticipating a potential rally in the coming weeks. Top macro and on-chain analysts, including experts at CryptoQuant, have highlighted that if Bitcoin breaks through the significant resistance at $69,500, it could trigger a significant move towards novel highs.
The data suggests that such a breakout could initiate an uptrend, pushing Bitcoin into previously uncharted territory. This critical price point could therefore be key to determining the near-term direction. Investors and market observers are closely watching this key level as it has the potential to change BTC’s future trajectory.
Bitcoin Bull Market: Road to Up-to-date ATH
Bitcoin has experienced a significant augment of over 15% since reaching local lows on September 6, leading to a significant change in investor sentiment. This upward movement has sparked renewed discussions among analysts and traders about the potential for a bull run.
The growing optimism is fueled by insights from prominent on-chain analyst Axel Adler of CryptoQuant. Adler recently shared data revealing information about Xindicating that BTC’s rally could begin once the price breaks above $69,500. According to Adler, this key level is likely to trigger an augment in fear of missing out (FOMO) in the market as previous profit takers rush back into BTC, fueled by the fear of missing out on potential gains.
Adler’s analysis highlights the BTC Annual Quantile Trends chart, a valuable tool for identifying bullish phases in the Bitcoin market. The chart suggests that breaking through the $69,500 threshold, which is above the 75% quintile, will be key to starting the next bullish phase. Historically, when Bitcoin starts a rally, it tends to rise quickly and volatilely, often causing a shock among skeptical investors.
If Bitcoin successfully breaks through the $69,500 level, as crypto enthusiasts predict, it could signal the beginning of a significant bull run. The market reaction to this potential breakout will likely set the direction of Bitcoin’s price trajectory and overall market sentiment in the near future.
BTC Technical Levels
Bitcoin is trading at $60,252 following a series of positive sentiments and rising price action. The recent rally has lifted BTC above the critical 4-hour 200-hour exponential moving average (EMA) at $58,800, which has acted as resistance since early August.
Holding above $60,000, Bitcoin is now flirting with higher prices, suggesting the market could be positioning itself for significant gains in the coming months. This change in momentum could be the start of a stronger uptrend if Bitcoin continues to consolidate above $60,000.
However, if BTC fails to hold support at this level and falls below the 4H 200 EMA, a deeper correction is likely. The next significant support level will be around $55,500, where demand could stabilize the price or potentially push it lower if selling pressure increases. The coming days will be crucial in determining whether BTC continues its upward trajectory or faces a fleeting pullback as traders will watch to see if key levels are held or broken.
Featured image is from Dall-E, chart is from TradingView
