The general mood for bitcoin (BTC) is still neutral, pointing to a rise to $70,000 and higher.
Bitcoin’s surprise 8% surge triggered $134 million in liquidations on the last day.
Technical analysis of Bitcoin points to a potential profit booking of almost $70,000.
The price of Bitcoin (BTC) continues to rise unabatedly, as the most valuable digital currency continues to increase by 8%, bringing it closer to its soon-to-be all-time highs. At $68,200, Bitcoin has a $1.340 trillion market capitalization as of right now. Notably, BTC has gained more than 22% on the weekly chart. It’s interesting to note that when expressed in euros (EUR), the price of Bitcoin has already risen to all-time highs.
Is a Rally in Bitcoin (BTC) Prices to $70,000 and Above Likely?
According to Santiment, an on-chain data provider, the current market value of Bitcoin is $68.0K, which is very close to its all-time high (ATH) of $68.6K—just 0.9% separates the two. Some traders predict a breakout soon, but the overall sentiment surrounding Bitcoin’s price surge remains surprisingly neutral compared to past bull runs.
In contrast to several meme currencies and other altcoins that have recently seen value increases, Bitcoin’s neutral emotion creates a situation conducive to maintaining a rally. This feeling and some traders’ skepticism point to the possibility of short position liquidation, which might drive the surge over $70K and beyond.
Monitoring how mood can change after the expected all-time high is achieved is critical because major resistance breaches can cause crowd perceptions to change quickly. It’s important to remember that market moves frequently go against traders’ predictions, according to Santiment. The three-year peak in realized profits from Bitcoin (BTC) suggests that typical traders holding onto their assets are making significant gains.
Additionally, the Bitcoin network saw liquidations totalling more than $134 million, according to CoinGlass’s Liquidation data. Out of them, short liquidations totalling nearly $105 million have occurred. However, last week saw more remarkable inflows into the Bitcoin ETF.
Is Bitcoin Profit Booking About to Happen?
Checkmate, an on-chain analyst, has brought attention to a noteworthy development in the Bitcoin market: long-term investors have begun to distribute Bitcoin at its all-time high (ATH).
Although the Grayscale Bitcoin Trust (GBTC) is responsible for about 40–50% of this distribution, it still shows how skilled HODLers are at analyzing market movements. The pattern mirrors the traditional approach to investing: buying low and selling high.
Like clockwork, long-term #Bitcoin holders have started their ATH distribution.
There is the nuance that a large proportion of this ~40-50% is from GBTC, but it goes to show that there are HODLers who can and do read the market very well.
Buying low, selling high. pic.twitter.com/Q6kGQHoOxR
— _Checkɱate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) March 4, 2024
On the 4-hour chart, the TD Sequential indicator has shown a sell signal for Bitcoin, according to cryptocurrency analyst Ali Martinez. In the past, when such signals have been followed since February 15, the price of Bitcoin has dropped by 1.5% to 4.7%. For short-term traders, it is worthwhile to monitor this pattern closely. Also, some bookings may soon occur as Bitcoin holders enjoy a 100% profit.
