Bitcoin peaked at $80,768 a few hours ago, surging from $78,200. It is no doubt off to a good start this week, and expectations are mounting.
However, last week, the general consensus was that the uptrend had ended. One analysis outlined several bearish indicators to support this claim, citing dwindling trading volume and rising positive funding rates as the basis.
The trend shifted on Monday following a recent milestone. Recall that most analysts flipped bearish after the apex coin failed to break above $79,500 after two retests. It flipped the mark in the early hours of Monday, attaining the high.
The recent move reignited the conviction of further increases this week. However, analysts set the target for the renewed uptrend at $84k. The Bitcoin CME chart shows a gap extending between $81k to $84k. Its latest surge above $80,000 increases the likelihood that BTC will fill the gap.
After filling this gap, there are no other ones to the top. It remains to be seen how prices will react afterward. Nonetheless, the previous week’s events remain fresh in mind as the apex coin retraced to levels not seen in seven days.
The current rise is driven by several factors, including news of a halt to US attacks in the Middle East. While the pause remains fragile, reports of Iran resuming offensives have not had a significant impact on the crypto market.
Bitcoin Volume Remains Low
Since the recent hike, funding rates are now negative following Monday’s actions. The funding rate may indicate an impending short squeeze, pushing prices higher.
However, the liquidation heatmap shows several clusters where prices may hover before the target. At the time of writing, the bears may stage selling congestion at $81k, as that is the level with the most robust liquidations. After flipping it, prices may surge higher, as there are no thick levels above $82k.
The apex coin may also benefit from fundamentals. The US BLS is set to release a flurry of data over the next six days. Job openings, ADP employment, and new home sales are among the biggest reports before Thursday. If they come out positive, the likelihood of flipping $84k increases.
However, it’s not all green for Bitcoin. The factors outlined in the earlier analysis remain the same. Onchain, buying pressure is declining. With focus on sharks, their buying volume has significantly dwindled, dropping to levels last seen in Apr 13.
Nonetheless, other holders have also reduced their selling pressure. By all indications, the drop in volume will affect the continuation of the uptrend.
Another factor to consider is the Coinbase premium index, which flipped negative last week. It shows no signs of rebounding from the latest increases.
Away from onchain data, the 1-day chart shows that Bitcoin recently broke above bollinger’s upper band. If it loses momentum, it may retrace to the middle band at $77k. Additionally, the relative strength index is at 66, just 4 clicks from overbought territory. If prices continue upward, the metric will cross the boundary, marking its first since October.
Prices will retrace afterward, as they did previously. Nonetheless, the RSI readings do not reduce the likelihood of an attempt at $84k. It only points to increased pressure after flipping it.
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