- The price of Bitcoin has risen by more than 10% in the past seven days.
- BTC was testing resistance, and a breakout could spark another bull rally.
Bitcoin [BTC] surprised investors last week when the price rose by double digits. The trend created excitement in the market as expectations of BTC recovering $70,000 increased.
Considering the most recent data, this possibility doesn’t actually seem like a long shot.
Bitcoin repeats history?
CoinMarketCaps facts revealed that the price of BTC has risen more than 10% in the past seven days, allowing it to rise above $67,000.
At the time of writing, the king of cryptos was trading at $67,115.81 with a market cap of over $1.32 trillion.
While BTC’s price action favored the bulls, Titan of Crypto, a popular crypto analyst, recently posted tweet to draw attention to an interesting development.
According to the tweet, BTC was targeting the upper line of its realized price. If this translates into reality, investors could witness BTC break above $100,000 in the coming weeks.
The possibility of this happening was likely, as similar episodes occurred in the past. To be precise, Bitcoin has reached the upper line of its realized price during every cycle in the past.
Things in terms of on-chain metrics were also looking quite optimistic for Bitcoin.
AMBCrypto’s analysis of CryptoQuant facts revealed that BTC net deposits on the exchanges fell, indicating low selling pressure.
The MPI was green, meaning miners sold fewer assets compared to the annual average. However, at the time of writing, BTC’s aSORP was in the red, indicating that more investors were selling for a profit.
In the middle of a bull market, this could indicate a market top.
Source: CryptoQuant
What can you expect in the short term?
In addition to aSORP, some other statistics have also raised warning signs. For example, AMBCrypto’s analysis of Glassnode’s data found that BTC’s accumulation trend score had a value of 0.0107.
The accumulation trend score is an indicator that reflects the relative size of entities actively accumulating coins on-chain in terms of their BTC holdings.
A value closer to 0 means that investors are distributing or not accumulating BTC.
Source: Glassnode
Apart from this, BTCs fear and greed index had a value of 72. This meant that the market was in a “greed” phase, which often results in price corrections.
That’s why AMBCrypto analyzed BTC’s daily chart to see where it was heading in the short term. We found that BTC was testing its resistance at the $67.3k level at the time of writing.
Likewise, the price remained above the 20-day Exponential Moving Average (EMA).
Read Bitcoins [BTC] Price prediction 2024-25
Moreover, the Relative Strength Index (RSI) also registered a rise, indicating that BTC could turn its resistance into support. If that happens, things will remain bullish in the near term.
Nevertheless, the Chaikin Money Flow (CMF) moved south, indicating a speedy price correction.
Source: TradingView