Bitcoin has seen a strong recovery after a sudden drop from $75K and is now aiming to reach that level again. Traders and investors are hopeful that this could mark a new record high for the cryptocurrency.
From a technical analysis perspective, the daily chart shows a rebound from the $60K support zone and a breakout above the $69K resistance level. With the Relative Strength Index (RSI) showing values above 50%, indicating bullish momentum, it appears that Bitcoin is poised to make a new high.
Looking at the 4-hour timeframe, the price has broken a descending channel pattern and retested the $69K level before heading towards the $75K resistance zone once more. The RSI on this timeframe also suggests bullish momentum, further supporting the possibility of a higher high in the short term.
On-chain analysis reveals a decline in Bitcoin exchange reserves, indicating a tightening supply in the market. This trend typically corresponds with increased demand for Bitcoin, potentially setting the stage for a price surge in the coming weeks.
However, it is important to note that while historical patterns may suggest an increase, the future performance of Bitcoin remains uncertain and can be influenced by various factors such as market sentiment, regulatory developments, and macroeconomic trends.