Bitcoin’s Bullish Outlook Remains Strong: Data Confirms Cycle Top Is Far Away
Bitcoin’s Bullish Momentum Remains Strong: Cycle Top Far from Sight
Following two weeks of positive price action, Bitcoin continues to trade within the $65,000 to $69,500 range, sparking renewed optimism among analysts and investors. The prevailing sentiment suggests that Bitcoin is poised to reach new all-time highs in the coming weeks, dispelling earlier concerns about a premature cycle top in March.
Key data from CryptoQuant indicates that Bitcoin is far from typical cycle-top conditions, supporting a bullish outlook for the remainder of the year. While price action is expected to remain volatile in the lead-up to the US election on November 5th, the overall market dynamics suggest a strong foundation for further growth.
Bitcoin’s Calm Before the Storm
Bitcoin’s resilience above $67,000 signifies its potential for a breakout above $70,000. However, the current price action suggests a likely consolidation phase below this key level before a new upward leg. Market participants are closely watching Bitcoin’s behavior around these price levels, as a sustained move above $70,000 could ignite a significant rally.
CryptoQuant analyst Axel Adler shed light on the Long-Term Holder (LTH) to Short-Term Holder (STH) SOPR Ratio, currently sitting at 1.8. This metric, often used to gauge selling pressure and market sentiment, shows a bullish cross with its 90-day moving average, supporting the narrative that Bitcoin remains well below its cycle top. Adler noted that this ratio usually reaches around 7 before Bitcoin approaches a cycle culmination.
The combination of this metric’s positive movement and broader market strength paints a favorable picture for Bitcoin’s price action in the coming weeks. The data suggests that Bitcoin still has significant room for growth within this cycle, reinforcing confidence among long-term holders and investors seeking continued upside.
BTC Technical Levels: Key Levels to Watch
Bitcoin currently trades at $67,500, facing challenges after failing to maintain its bullish structure on the 4-hour chart. The price’s inability to set a new high above $69,500 signals a potential shift in momentum.
A critical support level now stands at $65,000, the local low that previously held the bullish trend intact. Maintaining a position above this level is crucial to prevent a broader retracement and maintain confidence among bulls.
The current price action remains indecisive, leaving the direction for the coming days unclear. A breakout above $69,500 would restore the bullish structure, likely attracting more buyers and signaling another rally attempt.
Conversely, a break below the $65,000 support level would indicate a retracement, potentially pushing Bitcoin towards lower demand zones as bulls regroup.
The ongoing consolidation phase underscores the importance of these levels in determining Bitcoin’s short-term trajectory. With both bulls and bears vying for control, Bitcoin’s ability to hold above $65,000 will be crucial to maintaining bullish sentiment.
Featured image from Dall-E, chart from TradingView