U.Today – experienced a 1,141% increase over the past 24 hours as the price of digital gold broke the $60,000 resistance mark and brought us closer to the long-desired target of $70,000. But the main question is: what's next?
All eyes in the cryptocurrency world are on Bitcoin due to its recent price surge. Bitcoin is currently trading at around $62,732 after breaking through the $60,000 resistance. This notable increase in volume indicates that investors, both institutional and retail, are becoming more interested and confident. This bullish trend is being driven by multiple factors.
Firstly, a supply shock has pushed up prices as a result of long-term investors and large corporations holding more Bitcoin, which is decreasing the available supply of the cryptocurrency. The general optimistic attitude in the cryptocurrency market has also helped Bitcoin's rise. According to technical analysis, Bitcoin has successfully broken above the 50-day and 100-day EMAs. The 200-day EMA, or approximately $64,024, is the next significant resistance level.
If this barrier is broken, there is a chance that Bitcoin could soon test $70,000. On-chain data further strengthens the bullish argument in favor of Bitcoin as it shows an increase in transaction volume and activity. With the Relative Strength Index (RSI) at 56 at the moment, there may still be more room for Bitcoin to rise before entering overbought territory.
However, caution is advised despite the optimism. Before the market makes a clear move, it may consolidate around the $65,000 mark, which is an important psychological barrier. To assess the strength of this uptrend, investors should keep a close eye on volume and price action.
Bitcoin’s trajectory will also be greatly influenced by external variables such as macroeconomic events and regulatory news. Bitcoin could maintain its upward momentum with the help of favorable regulatory developments and growing institutional adoption.
This article was originally published on U.Today
