Bitcoin (BTC), the world’s largest cryptocurrency by market cap, has broken out of a major consolidation and is now positioned for a significant upward rally. This breakout occurred on October 18, 2024, when BTC finally escaped from a descending channel pattern that had constrained its movement since March 2024.
Bitcoin Technical Analysis and Upcoming Levels
Expert technical analysis indicates that BTC is showing bullish signs not only due to the recent breakout but also because it has surpassed a strong descending channel pattern that it had been following for several months. The fact that BTC underwent a brief consolidation at the upper boundary of the channel before breaking out suggests that this breakout is genuine.
Following this breakout, it is highly likely that BTC is on the verge of a significant upward movement. Based on past price trends, there is a strong chance that BTC could reach the $72,000 level and potentially set a new all-time high in the near future.
It is crucial for BTC to close a daily candle above the $68,800 level to confirm this breakout. A successful confirmation would signal a bullish trend for BTC holders.
BTC’s Bullish On-Chain Metrics
BTC’s positive outlook is further supported by on-chain metrics. Coinglass, an on-chain analytics firm, reports that BTC’s Long/Short ratio has reached 1.19 in the last few hours, indicating strong bullish sentiment among traders following the breakout.
Moreover, BTC’s future open interest has increased by 3.9% over the past four hours and 2.36% in the most recent hours. This rise in open interest suggests a growing interest and participation from traders.
Rising open interest and a long/short ratio above 1 are often seen as favorable conditions for establishing long positions. Currently, 54.45% of top traders hold long positions, while 45.55% hold short positions.
Current Price Momentum
At the moment, BTC is trading around the $68,800 level and has seen a price increase of over 2% in the last 24 hours. The trading volume has also risen by 18% during the same period, indicating strong participation from traders and investors as BTC gears up for a major rally.