Bitcoin is once again showing signs of a potential rally towards its previous all-time high (ATH) of $111,970, currently trading at $107,666. With a 5.71% gain over the past 7 days and a 32% spike in 24-hour trading volume, bullish momentum is clearly building up. The big question on everyone’s mind is, "Can BTC break past its ATH this week?" Let’s delve into what on-chain and price action data are indicating.
On-Chain Metrics Hint at a Healthy Rally?
Funding Rates Stay Balanced
Funding rates on major exchanges are slightly positive, peaking around 0.009%, indicating that traders are optimistic but not excessively leveraged. The dip in funding on June 21, followed by a steady rebound, suggests a healthy cooldown and a reduction in overheated long positions. This sets the stage for a sustainable push higher.
Exchange Netflows Turn Negative
BTC exchange outflows have surpassed inflows after reaching a peak on June 20. This indicates that traders are moving their coins off exchanges, likely into cold storage, signaling long-term confidence. The decline in exchange inflows also suggests reduced selling pressure in the short term, increasing the likelihood of an upward continuation.
Bitcoin Price Analysis
Bitcoin’s price has seen a 0.29% increase on the day and a 5.71% surge over the past week, reaching a daily high of $108,798. The significant uptick in 24-hour volume supports the breakout move and indicates renewed market participation. With just a narrow gap of around 3.8% from the ATH, Bitcoin is within striking distance. If the current momentum persists, a test of the $112k level becomes increasingly feasible.
A move above $108.8k, the recent high, could trigger breakout trades and short squeezes. However, caution is advised as potential resistance may arise around $110k, serving as a psychological barrier before the ATH retest.
FAQs
- How close is Bitcoin to its all-time high?
Bitcoin is less than 4% away from its ATH of $111,970. - Can Bitcoin hit a new ATH this week?
Yes, strong volume, neutral funding, and outflows suggest BTC could break its ATH this week. - What could trigger a breakout above ATH?
Sustained volume, continued exchange outflows, and a clean break above $108.8K may trigger a push towards the ATH.In conclusion, Bitcoin’s current trajectory and on-chain indicators point towards a potential rally towards its previous ATH. Traders and investors are closely monitoring the market dynamics to see if Bitcoin can break past this significant milestone in the coming days. Stay tuned for further updates on Bitcoin’s price action and market movements.