Bitcoin Explodes Towards $63,000, But Is The Bull Run Back? (BTC Price Analysis)

Bitcoin price has been unable to continue its upward trajectory since breaking below the $75,000 level. However, a new bullish wave could start soon.

Technical Analysis

By TradingRage

The daily chart

On the daily chart, BTC price has been trapped inside a large descending channel pattern, making lower highs and lower lows. While some view the recent price action as a bearish reversal and a downtrend, the momentum isn’t all that bearish.

The $60,000 support zone has also held the price on several occasions and the market seems to be targeting the upper limit of the channel.

Therefore, a break above the pattern can be a decisive sign for a new uptrend, while a break below it would be disastrous as the market can crash towards the $52,000 support level in no time. .

Source: TradingView The 4-hour chart

The 4-hour chart supports the analysis done on the daily time frame. The price has bounced back from the $60,000 support zone recently and is testing a short-term resistance level around $63,500.

The Relative Strength Index has also risen above 50%, indicating that momentum is once again bullish. As a result, the $63,500 level could be broken soon and the price may rise towards the middle line of the channel and even beyond. This could be a likely scenario to start a price rally to new all-time highs.

Source: TradingView Sentiment Analysis

By TradingRage

Bitcoin Coinbase Premium Gap

While the price of Bitcoin has undergone a correction over the past couple of months, everyone is looking for a culprit. Obviously, there is no single underlying reason behind the decline. However, looking at the US market can provide valuable insight.

This chart shows Coinbase’s premium gap. It measures the difference between the BTC/USD pair on Coinbase and the BTC/USDT pair on Binance. So it basically shows a comparison of demand and supply between the US market and other countries.

Clearly, Coinbase’s premium gap has been very volatile of late. However, attention should be focused on the downside, where the metric has shown significantly low values. This selling pressure from American investors, who are mostly wealthy individuals and institutions, is undoubtedly one of the factors that have led to the recent decline. Therefore, as long as this trend continues, there would be little hope for a bullish continuation.

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