Bitcoin price recovered from the $65,000 mark a few days ago and is on track to reach a new all-time high soon.
Technical analysis
By TradingRage
The daily chart
On the daily chart, the price has formed a large symmetrical triangle pattern. Nevertheless, the market is currently testing the upper boundary of the pattern.
If the price manages to break the ceiling, a rally towards the $75,000 level and the creation of a new all-time high would become increasingly possible. The relative strength index is also showing values above 50%, indicating that momentum is bullish and a price increase is likely.
Source: TradingView
The 4 hour chart
Looking at the 4-hour time frame, the price recently broke above the triangle pattern and is currently retesting the broken trend line.
In case of a successful recovery, BTC could rise towards $75,000 and probably higher. On the other hand, a decline back into the triangle would cause the recent breakout to be a spurious breakout. Therefore, a decline towards the lower boundary of the pattern or even the $60,000 support zone becomes likely.
Source: TradingView
On-chain analysis
By TradingRage
Unrealized Net Profit Loss (NUPL)
As Bitcoin price has recovered above the $70,000 mark, market participants are expecting BTC to hit a new all-time high soon. This optimism can be seen in the holding behavior of investors.
This chart shows the net unrealized profit loss, which is the difference between the market capitalization and the realized capitalization divided by the market capitalization. Assuming that the last coin movement results from a purchase, NUPL gives the total amount of profit/loss of all coins. So it could be interpreted as the ratio of investors making profits.
As can be seen from the chart, the NUPL metric shows values above 0.5, which corresponds to what was observed during the all-time high in 2022. Therefore, while the market can still rise, the level of unrealized profits can be worrying as mass selling pressure can lead to a significant price drop.
Source: CryptoQuant
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Cryptocurrency charts from TradingView.
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