Bitcoin has rebounded strongly from the $65,000 mark after falling 6% from Monday's high of around $69,500. Despite the recent pullback, BTC remains in an uptrend that has been in place since early September. This recovery shows resilience, helping to maintain a bullish market structure.

Key data from CryptoQuant shows that the average funding rate has been steadily increasing since September, indicating that bullish sentiment is growing as more and more active traders enter the market.

The next two weeks will be pivotal for Bitcoin as prices approach their March all-time highs. Investors and analysts are closely watching price action as BTC gains momentum to break through key resistance levels.

If the bullish trend continues, Bitcoin could be poised for another significant rally, with the potential to reach new highs soon. However, any failure to hold current levels could lead to renewed volatility.

Bitcoin shows strength

Despite the recent decline, Bitcoin remains strong above key demand levels, maintaining its overall bullish structure. Analysts and investors are closely watching price action to confirm that the current phase is simply a bullish consolidation before the next move.

CryptoQuant analyst Axel Adler shared data on X, highlighting that the perpetual funding rate of BTC futures has shown steady growth since Bitcoin hit $60,000. This suggests that more and more bulls are entering the market, with optimism increasing as prices move higher.

Adler suggests that the bullish momentum is likely to continue as long as this funding rate increases, reinforcing that BTC is in a healthy consolidation phase. However, this does not guarantee an immediate breakout. There is still a significant chance that Bitcoin could trade sideways for the next few days. Sideways price action may be necessary to build liquidity, allowing the market to gather strength for a larger move.

While market sentiment remains bullish, especially with the continued increase in bullish activity, investors should be prepared for potential volatility. The next major price move could come in either direction, but steady support at key levels is a positive indicator for those betting on further Bitcoin upside.

BTC Holds Above Main Demand

Bitcoin is holding steady above $66,000 after finding support around $65,000. Currently trading at $67,100, the market appears to be in a consolidation phase and it could take some time before it breaks above the important $70,000 level.

For the bulls to sustain the upside momentum, the price must hold above $65,000 or find support around the $64,300 mark where both the 4-hour exponential moving average (EMA) and the moving average (MA) are aligned.

If Bitcoin fails to hold these support levels, a deeper correction is likely, with the price potentially falling back to the lower demand zone around $60,000. On the other hand, if BTC can break and hold above $70,000 in the coming days, this could trigger a strong rally towards all-time highs.

As investors closely watch key support and resistance levels, the next few days will be crucial in determining Bitcoin’s direction.