Bitcoin price has risen almost vertically in recent days and is approaching its all-time high of $69,000. Still, the cryptocurrency may not set a new record immediately as some warning signs point to a short-term correction.
Technical analysis
By TradingRage
The daily chart
On the daily time frame, it can be seen that the price has risen aggressively over the past month and has broken through several key resistance levels. The market is currently one step away from setting a new all-time high as there are no longer any significant long-term resistance levels other than the $69,000 mark itself.
Nevertheless, the relative strength index shows a clear overbought signal that could indicate a possible consolidation or decline in the coming days.
Source: TradingView
The 4 hour chart
Looking at the 4-hour time frame, the price has created a short-term resistance level at the $64,000 level. BTC has recently been consolidating between this level and the $60,000 support level.
Meanwhile, the Relative Strength Index is retreating from the overbought zone without the price seeing any significant decline. This can be interpreted as a cooling of momentum and an indication of a possible continuation soon after a breakout from the $64,000 level.
Source: TradingView
Sentiment analysis
By TradingRage
Bitcoin funding rates
As Bitcoin price quickly approaches its all-time high, the market is attracting many buyers and speculators. However, this extreme optimism could be costly in the short term.
This chart shows Bitcoin funding rates, one of the most valuable metrics for assessing future market sentiment. Values above zero indicate optimism, while negative values indicate a pessimistic mood.
The funding rates are currently high as they have shot up significantly in the last few days. This could lead to a long liquidation cascade in the short term, which could then lead to a rapid decline. Therefore, a correction could be due shortly before the uptrend resumes.
Source: CryptoQuant
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Cryptocurrency charts from TradingView.
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