Bitcoin hits new all-time highs, crossing $72,000. Let’s analyze together the future prospects for the BTC price.
Status of Bitcoin (BTC)
Following a favorable week, Bitcoin returned to its all-time high, initially reaching $69,300 before undergoing a 14% correction. It subsequently rebounded from $60,000 to set a new high at $70,200. Despite a weekly close slightly below the psychological threshold of $70,000, Bitcoin started the week on a positive note, surpassing this level to approach $72,000. This trend highlights continued investor interest and confirms a definitive break with the old record, signaling that the rally is still ongoing.
At the time of writing this article, the price of Bitcoin Bitcoin is trading just below $72,000. It is therefore above the value zone located around $67,000. BTC has broken away from its 50-day moving average, indicating a period of high volatility that may require adjustment. Bitcoin’s bullish momentum is constantly being reassessed upwards, as clearly demonstrated by oscillators, which even suggest the possibility of an excess period of demand for Bitcoin.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (BTCUSDT)
We can observe that the open interest of BTC/USDT perpetual contracts was able to recover after having fallen following the rejection of the ATH. Namely, the latter scenario resulted in a $2 billion reduction in open interest in Bitcoin perpetual futures, almost $43 million of which resulted from liquidations of long positions. Bitcoin’s funding rate appears to have recovered, suggesting that speculative interest is primarily geared toward buying. However, it is important to note that a high funding rate in derivatives markets can increase costs for long positions and encourage short positions, thereby increasing volatility and liquidation risk,
The liquidation heat map for BTC/USD shows that recently its price crossed a significant liquidation zone around $70,500. The fact that the Bitcoin price remains above this level demonstrates continued buying interest. Currently, the most marked liquidation zones are above the current price, at $73,000, and below, around $71,000. Even lower, the $66,000 area is also worth highlighting. As the market approaches these levels, we could see a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. These areas therefore represent major points of interest for investors.
Hypotheses for the price of Bitcoin (BTC)
If Bitcoin manages to hold above $69,000, a further rise towards $73,000 could be on the horizon. The next resistances would potentially be around $75,000, or even $76,000. Beyond that, the target of $80,000 would become possible, which would represent an increase of around +10% compared to the current level.
If Bitcoin fails to hold above $69,000, a zone of buyer support could emerge around $66,000. In case the downtrend persists, the next critical threshold would be around $62,000. Such a drop would then represent a decline of around -14%.
Conclusion
Bitcoin hit a new all-time high at $70,200 after a correction, demonstrating continued buying interest despite a weekly close below $70,000. Volatility remains elevated, with positive technical signals encouraging upside. However, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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