This Weekend Could See Bitcoin Reach New Heights, Surpassing $70,000
Bitcoin’s price has been hovering in the sub $70,000 range recently, but there are indications that it could soon surge past this crucial level. On-chain metrics suggest that a bullish trend is on the horizon for the world’s leading cryptocurrency. The Reserve Risk indicator, which measures the confidence of long-term Bitcoin holders, is currently in a favorable position, indicating that holders may start accumulating more Bitcoin, signaling a potential recovery.
Another metric, the Price Daily Average Addresses (DAA) Divergence, provides further support for a positive outlook. This indicator compares a cryptocurrency’s price with the number of active addresses interacting with it daily, helping to identify potential price trends based on user activity. Currently, this indicator is flashing a “buy” signal, suggesting that Bitcoin is ripe for accumulation.
If these metrics prompt investors to add Bitcoin to their portfolios, the cryptocurrency could experience a significant surge in the coming days. It is predicted that Bitcoin’s price will likely rise to $70,000 and beyond over the weekend. However, there may be some resistance at the $71,370 level, which has remained unbreached since mid-March. Intense bullish cues would be required to break through this barrier.
On the downside, if Bitcoin fails to breach the resistance level at $68,250, it could retrace back to $65,300. A further drop below this level would invalidate the bullish thesis and lead to a test of $61,730.
Overall, the indicators suggest that Bitcoin has the potential to break $70,000 and continue its upward trajectory this weekend, but there are key resistance levels to watch out for.