Bitcoin's recent rally has brought it within striking distance of its August monthly high, a level that analysts say is a potential springboard to new all-time highs.
During European trading hours Tuesday, Bitcoin is trading at $63,710, up 0.4% in the last 24 hours and approximately 9% over the past week, according to CoinGecko data.
In their Cryptocurrency Compass report shared with Decrypt, Fairlead Strategies stated that Bitcoin has extended its relief rally, now testing resistance from its 200-day Moving Average (~$63.9K), which roughly aligns with its previous peak from August.
The firm cautioned that "short-term overbought conditions are in place," suggesting that a pullback could occur before any potential breakout shows up.
Meanwhile, a recent Bitfinex Alpha report shared with Decrypt highlighted the significance of the August 25 high of $65,200.
The report highlighted the significance of Bitcoin's recent price movements in relation to previous high, saying that BTC is now within touching distance of the August 25 top of $65,200. “The reason this level is important is because since the all-time high of $73,666 was reached on March 14th, BTC has still not managed to eclipse a single high before a local/new bottom was formed.”
Valentin Fournier, an analyst at BRN, meanwhile said Bitcoin's volatility is decreasing, and the price has remained above the key $62,500 level. That could pave the way for further gains, he said, but the relative strength index (RSI) is still elevated indicates, a reversal may be imminent.
The relative strength index tracks the speed and magnitude of an asset's recent price changes to detect overvalued or undervalued conditions in the price.
“We recommend maintaining medium-level exposure to capture potential gains while protecting against the possibility of a near-term dip,” he said.
Will Bitcoin ETF Options Send the Asset to the Moon?
There will soon be a regulated options market for U.S. Bitcoin ETFs. But what does that mean, and how will this impact the price of Bitcoin? On Friday, the U.S. Securities and Exchange Commission (SEC) greenlighted Nasdaq to list and trade options for the iShares Bitcoin Trust—BlackRock’s $22 billion Bitcoin ETF whose shares track the price of Bitcoin. According to analysts, introducing options will make Bitcoin a more functional investment asset across the board. Options are derivative instru...
The cryptocurrency market continues to see mixed flows in ETF products, according to data from SoSo Value.
On Monday, Bitcoin spot ETFs saw a total net inflow of $4.5 million, with Fidelity's (FBTC) and BlackRock's (IBIT) contributing inflows of $24.9 million and $11.5 million respectively. That was offset by Grayscale (GBTC) experiencing a $40.3 million outflow.
In contrast, Ethereum spot ETFs recorded a total net outflow of $79.2 million on the same day. Grayscale's ETHE led the outflows with $80.5 million, while Bitwise's ETHW bucked the trend with an inflow of $1.3 million.
Bitcoin Stagnates as Analysts Forecast Potential Bottom For Ethereum Before End of Year
The cryptocurrency market displayed minimal movement on Friday. At the time of writing, Bitcoin is trading flat at $58,020, down a mere 0.4% in the last 24 hours and down 5% compared to this time last month. Amid lack of volumes ahead of the weekend, analysts have been forecasting a potential bottoming of Ethereum (ETH) over the next 2-4 months. The second-largest cryptocurrency by market capitalization, is experiencing a slightly steeper decline in Friday morning trading. At $2,345, it has slip...
Despite the ETF outflows, Ethereum's price has shown resilience, currently trading at $2,655, up 0.5% in the last 24 hours and 15% over the past week.
The Bitfinex report also raised concerns about the nature of Bitcoin's recent price movements and derivatives activity.
"OI [open interest] has reached $19.43 billion now while the price is still about $1,000 short of the local high," the analysts wrote. "This could potentially hint that a lot of the current move in the BTC price is being led by perpetuals and futures BTC trading, rather than spot market activity."
Edited by Stacy Elliott.
