The Bitcoin (BTC) price rally seems to be absolutely unstoppable as the largest digital asset surges by another 8% pretty close to hitting its new all-time highs. At press time, Bitcoin is trading at $68,200 with a market cap of $1.340 trillion. With this, BTC’s gains on the weekly chart exceed 22%.
Bitcoin Price Rally to $70,000 And Above Likely?
Insights from on-chain data provider Santiment indicate that Bitcoin’s current market value of $68.0K is remarkably close to its all-time high (ATH) of $68.6K, with just a 0.9% difference. While there’s a notable presence of traders anticipating a surpassing of this value in the near future, overall sentiment remains relatively neutral compared to previous bullish cycles.
Unlike several meme coins and other altcoins experiencing recent surges, Bitcoin’s neutral sentiment actually presents a favorable scenario for sustaining a rally. This sentiment, coupled with a degree of disbelief among traders, suggests potential for liquidation of short positions, thus potentially propelling a rally beyond $70K and further.
It’s crucial to monitor how sentiment may evolve once the anticipated all-time high is reached, as crowd perceptions can swiftly shift following significant resistance breaches. It’s worth noting that market movements often counter traders’ expectations, reports Santiment. Realized profits from Bitcoin (BTC) have surged to a three-year peak, indicating that average traders who have held onto their assets are reaping substantial rewards.
Also, as per the Liquidation data from CoinGlass, more than $134 million in liquidations took place on the Bitcoin network. Of these, nearly $105 million in short liquidations have taken place.
Is BTC Profit Booking Round the Corner?
On-chain analyst Checkmate has highlighted a notable trend in the Bitcoin market, noting the initiation of all-time high (ATH) distribution by long-term Bitcoin holders.
While approximately 40-50% of this distribution can be attributed to the Grayscale Bitcoin Trust (GBTC), it serves as a testament to the adeptness of HODLers in interpreting market dynamics. The pattern reflects a classic investment strategy of buying low and selling high.
Like clockwork, long-term #Bitcoin holders have started their ATH distribution.
There is the nuance that a large proportion of this ~40-50% is from GBTC, but it goes to show that there are HODLers who can and do read the market very well.
Buying low, selling high. pic.twitter.com/Q6kGQHoOxR
— _Checkɱate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) March 4, 2024
According to crypto analyst Ali Martinez, the TD Sequential indicator has signaled a sell indication for Bitcoin on the 4-hour chart. Historically, following such signals since February 15, Bitcoin’s price has declined by 1.5% to 4.7%. This pattern is worth close observation for short-term traders. Also, with Bitcoin holders in 100% profit, some profit booking could be around the corner.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
