On-Chain Indicator Signals Bitcoin Cycle Top Is Far Ahead – Data Confirms Bullish Outlook
25 Outubro 2024 - 4:00PM
NEWSBTC
Bitcoin currently ranges between $65,000 and $69,500 following two
weeks of bullish price action, sparking renewed optimism among
analysts and investors. The prevailing sentiment is that BTC is on
the verge of reaching new all-time highs in the coming weeks, with
confidence building that March’s cycle top predictions may have
been premature. Related Reading: Dogecoin Liquidity Sweep
Signals DOGE Is Ready For A Rally Key metrics from CryptoQuant
reveal that Bitcoin is still far from typical cycle-top conditions,
instead signaling a bullish outlook as we move into November. As
the U.S. election approaches November 5 and macroeconomic factors
continue to shift, price action is expected to remain unpredictable
and volatile. Market participants are watching closely, expecting
that geopolitical and economic events could influence BTC’s
trajectory. Given this context, many believe the next major move
for Bitcoin could catalyze a fresh leg up, potentially breaking
through previous highs. Bitcoin Calm Before The Storm? Bitcoin is
holding firm above $67,000, showing resilience as it edges to a
potential breakout above $70,000. However, the current price action
indicates that Bitcoin may consolidate below this key level before
moving up to new highs in the next leg. Market participants closely
watch BTC’s behavior around these price levels, as a sustained push
above $70,000 could set the stage for significant gains.
CryptoQuant analyst Axel Adler recently shared critical insights on
X, highlighting the current Long-Term Holder (LTH) to Short-Term
Holder (STH) SOPR Ratio, which sits at 1.8. This metric is often
used to gauge selling pressure and market sentiment, with higher
levels indicating increased profit-taking that could signal a
market peak. According to Adler, when this ratio climbs to
around 7, Bitcoin will be nearing a cycle culmination. The ratio’s
bullish cross with its 90-day moving average reflects a positive
outlook, supporting the narrative that BTC remains well below its
cycle top. Related Reading: Number Of Bitcoin Bulls Increases As
Funding Rate Shows Steady Growth – Details This metric’s movement
and broader market strength paint a favorable picture for Bitcoin’s
price action in the coming weeks. The data suggests that Bitcoin
still has room to grow within this cycle, providing confidence to
long-term holders and investors looking for continued upside. BTC
Technical Levels Bitcoin is trading at $67,500, facing challenges
after failing to maintain its bullish structure on the 4-hour
chart. The price couldn’t set a new high above $69,500, marking a
potential shift in momentum. A crucial support level now sits at
$65,000, the local low that previously held the bullish trend
intact. Holding above this level is essential to prevent a broader
retrace and maintain confidence among bulls. Currently, price
action remains indecisive, leaving the direction for the coming
days unclear. A breakout above $69,500 would restore the bullish
structure, likely drawing more buyers into the market and signaling
another rally attempt. Conversely, a break below the $65,000
support would signal a retrace, potentially leading BTC to lower
demand zones as bulls look to regroup. Related Reading: Solana
Stays Strong Despite BTC Drop – $176 Next? The current
consolidation phase highlights the importance of these levels in
determining Bitcoin’s short-term trajectory. With both bulls and
bears vying for control, BTC’s ability to hold above $65,000 will
be crucial to retaining bullish sentiment. Featured image from
Dall-E, chart from TradingView
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