Key Points
- Bitcoin’s price has rebounded to over $65k, following a recent correction phase.
- The altcoin market has also seen a surge, contributing to a 3% increase in the total crypto market cap.
Bitcoin (BTC) has seen a significant rebound in its price, currently trading around $65,232, a 2.4% increase in the last 24 hours. This comes after a recent correction phase, which ended last week with a Doji candlestick, indicating aggressive accumulation by buyers.
The surge in Bitcoin’s price has had a ripple effect on the altcoin market, leading to an overall increase in the total cryptocurrency market cap by more than 3%, which now stands at approximately $2.54 trillion.
Bitcoin’s Potential New ATH
Bitcoin, having established a strong weekly support range between $60K and $63K, is now in a position to revisit its all-time high (ATH) set in May. The daily Relative Strength Index (RSI) has been closely following the market rebound, breaking out of a falling logarithmic trend as Bitcoin’s price against the US dollar rebounded above $63k.
However, for the bullish rally to the ATH to continue, Bitcoin’s price must regain the daily 50 Moving Average (MA) as a support level and consistently close above $67k.
In anticipation of a new altseason, on-chain data shows that short-term Bitcoin holders have been distributing profits to the altcoin market. As Bitcoin’s weekly dominance continues to rise, the RSI has been forming a bearish divergence. The ETH/BTC pair has also shown a reversal pattern, reminiscent of the 2021 crypto bull run.
Positive Outlook for Bitcoin
The cryptocurrency market has seen a positive shift with the worst seemingly behind us. Clearer cryptocurrency regulatory frameworks are being enacted globally, led by Europe’s MiCA, indicating that the mass adoption of web3 protocols and digital assets is underway.
More global jurisdictions are expected to follow the United States and Hong Kong in approving spot Bitcoin ETFs. The demand for Bitcoin and other digital assets by institutional assets has been on the rise, driven by the need to tokenize real-world assets (RWA) on the blockchain.
The Bitcoin blockchain has been receiving significant support from web3 developers, who are looking to build layer two with smart contract capabilities. At the time of this report, Bitcoin layer two projects had a combined valuation of about $3.5 billion and a 24-hour trading volume of around $106 million.
Bitcoin Price Predictions
Various analysts, including those from Wall Street, have issued different price targets for Bitcoin for this bull cycle. Some expect Bitcoin’s price to rally to over $1 million in this cycle, while Bernstein analysts predict the flagship coin to reach at least $150k by the end of next year.
Bernstein analysts, led by Gautam Chhugani and Mahika Sapra, have noted that the notable spot Bitcoin ETF cash inflow has made the risk-to-reward ratio more attractive.
