A key Bitcoin indicator has flashed again for the fifth time, indicating a sharp rise in the coming days.
Bitcoin has finally managed to break above the potential market bottom.
Despite the high buying pressure, some indicators turned bearish.
After a week of price increases, Bitcoin (BTC) price has fallen again in the past 24 hours. However, this trend may change in the coming days as Bitcoin price has been following a historical trend. If history repeats itself, investors may soon witness a major price movement.
Bitcoin's main indicator lights up
AMBCrypto reported earlier that Bitcoin managed to break $64,000 a few days ago, but the move did not last. The major cryptocurrency saw a price correction of almost 2% in the last 24 hours, pushing it back down to $63,117.53.
While this was happening, Axel, a well-known cryptocurrency analyst, tweeted an interesting development. According to the tweet, over the past six months, volatility has continued to compress, and an alert has appeared on the chart.
It is worth noting that this alert appeared for the fifth time in the history of Bitcoin.
Specifically, such alerts appeared in 2015, 2016, 2017, and 2023 before appearing again in 2024. Historically, whenever such an alert appears, the Bitcoin price has recorded a significant price movement to the north.
Therefore, if history repeats itself, investors may expect Bitcoin to start a new bull run in the coming days.
Is Bitcoin Ready to Rise?
With history pointing to a new price spike, AMBCrypto looked at Bitcoin’s on-chain metrics to see if they were also pointing to a price spike. Our look at Glassnode data revealed that Bitcoin’s price just jumped above the potential market bottom at $61.8k.
If the Pi Cycle Top indicator is reliable, the upcoming rally could push the coin towards a potential market high of $109K in the coming weeks or months.
Apart from that, AMBCrypto also reported earlier that buying pressure on the coin was high, which also indicates a price rally. However, not everything was in favor of the royal coin.
Our analysis of CryptoQuant data revealed that Bitcoin’s aSORP indicator turned red. This clearly means that more investors were selling at a profit. In the midst of a bull market, this can indicate a market peak.
Then we took a look at the daily chart of Bitcoin to better understand the possibility of its rise. According to our analysis, Bitcoin was rejected at the resistance level of $64.1k.
Additionally, the price of the coin had also touched the upper limit of the Bollinger Bands indicator, indicating a price correction.
Read Bitcoin (BTC) Price Prediction 2024-2025
If there is a price correction, Bitcoin may drop back to $62,000. But in case of a price rise, Bitcoin will need to break through the $64,000-$65,000 range, and liquidations will increase sharply there.
Increased liquidation usually leads to short-term price corrections.
