Bitcoin
Bitcoin’s Roadmap to $75K – Why This Pattern Is Critical for BTC Price
- BTC price appreciated more than 6% as it approached US$63 thousand on the charts
- Most metrics and indicators also flashed green
Bitcoins [BTC] price action once again turned volatile, quickly approaching $63K on the charts. Meanwhile, however, a pattern appeared to be forming on the cryptocurrency’s price chart – a sign that BTC’s price could reach $75,000 in the coming weeks.
Bitcoin Price Action Looks Promising
According to CoinMarketCap, BTC gained more than 6% last week, appreciating 3% in the last 24 hours alone. At the time of writing, BTC is trading at $62,998.95, with a market capitalization of over $1.24 trillion.
Despite the drop from its ATH, however, most market analysts remain positive about the crypto’s price action. In fact, AMBCrypto had already reported that Ki Young Ju, CEO of analytics firm CryptoQuant, stated that the fundamentals of the Bitcoin network could support a market valuation “three times its current size.”
Although BTC price action has turned bullish, Titan of Cryptos, a popular crypto analyst, pointed out in a tweet that an inverse head and shoulders pattern was forming on the BTC price chart. According to the tweet, the pattern suggested that BTC price could soon surpass its all-time high (ATH) and reach $75K in the coming weeks.
However, the tweet also mentioned the adverse scenario. If everything doesn’t work out, BTC could fall to $56,000 again. Therefore, it is worth taking a closer look at the state of cryptocurrency to see which outcome is most likely.
What to expect from Bitcoin?
AMBCrypto Review of CryptoQuant data revealed that Bitcoin’s foreign exchange reserves are falling. This clearly meant that buying pressure was high, which can be inferred as a bullish signal.
Its binary CDD suggested that long-term holders’ movements over the last 7 days were lower than average, meaning they have a reason to hold their coins. Additionally, BTC’s NVT index fell last week, meaning it was undervalued. These metrics supported the possibility of BTC touching or surpassing its ATH.
Source: Glassnode
However, their aSORP gave opposite signals.
At press time, BTC’s aSORP was red, indicating that more investors were selling at a profit. In the middle of a bull market, this could indicate a market top.
Source: CryptoQuant
To check whether the market has reached the top, AMBCrypto then analyzed the daily BTC chart. According to our analysis, BTC was testing its 20-day exponential moving average (EMA) at the time. A successful breakout above would guarantee a sustained rally.
To read Bitcoins [BTC] Price prediction 2024-25
Its Money Flow Index (MFI) also registered a sharp increase.
On the contrary, Chaikin Money Flow (CMF) looked bearish. This was a sign that the price of BTC may start to fall, which could push its value towards $56K on the charts.
Source: TradingView