Over the past couple of months, the price of Bitcoin has been consistently moving up and down, approaching a new all-time high.
Technical analysis
Edris Derakhshi (TradingRage)
Daily chart
On the daily chart, the price has been rising since the rebound from the support level of $52 thousand.
Although the market broke above the key 200-day moving average located near the $64K level and the $68 area, it failed to break above the all-time high.
The price is currently falling to the $68K support level, but it looks set to recover soon and reach a new all-time high as the market structure remains bullish.
4 hour chart
Looking at the 4-hour chart, the market is moving up inside an ascending channel. However, it has recently been rejected from the upper boundary of the channel and is currently testing the lower trend line. If the range continues, the market is likely to reach a new all-time high soon.
However, a breakout could lead to a correction to $64k or even $60k in the coming weeks.
Sentiment Analysis
Edris Derakhshi (TradingRage)
Bitcoin Funding Rates
Over the past few years, the futures market has significantly influenced the price behavior of BTC. Thus, aggregate sentiment analysis can help predict future market trends more accurately.
This chart provides a metric for Bitcoin funding rates, which measures whether buyers or sellers are more aggressive in pursuing their leveraged positions. Positive values indicate bullish sentiment, while negative values indicate bearish expectations.
As shown in the chart, funding rates have been positive during the recent uptrend.
However, these values are still much lower than the financing rates seen during the last record high in March. Thus, we can conclude that the futures market is still not overheated and with sufficient spot demand, we can expect prices to rise in the coming weeks.
