Key Points
- Bitcoin’s (BTC) price surpasses the important $65,000 mark, hinting at a potential bullish trend.
- Bitcoin’s MVRV Z-score indicates the cryptocurrency is no longer overbought and suggests a healthy upward trend.
Bitcoin’s price has broken through the significant $65,000 resistance level. This occurred just two days after the Bitcoin halving event, indicating a potential shift towards a bullish market trend.
On April 22, Bitcoin reclaimed the $65,000 mark. Kristian Haralampiev, structured products lead at Nexo, suggests this could signal a change in market sentiment that might end the current price correction.
Market Sentiment and Predictions
Haralampiev noted that traditional finance markets opened calm amid Middle East tensions. Risk-on assets increased, while gold opened lower. Higher levels of leverage and positioning in the options markets, along with an increase in open interest across derivatives, suggest a catch-up rally could be in progress.
Crypto analyst Trader Alan suggested that Bitcoin reclaiming the $65,600 mark on the four-hour chart could signal a bullish turn for BTC price. He noted that this breakout is associated with a “higher lows into the resistance” pattern and RSI breakout simultaneously, indicating a strong buying power and a strong LTF bottom formation.
Bitcoin’s MVRV-Z Metric Resets
Following the past week’s correction, Bitcoin’s MVRV Z-score, a technical indicator used to assess whether an asset is overbought or oversold, saw a healthy correction. It fell to 2.08 on April 17, suggesting that Bitcoin is no longer overbought.
Philip Swift, the founder of LookIntoBitcoin, noted that the indicator suggests a healthy upward trend, in line with previous bull cycles. He stated that the cooling off over the past month has been very healthy and similar to previous cycles.
Despite this week’s positive price action, it’s too early to confirm the end of the current correction due to the decreased market depth, which could result in more price volatility.
Jag Kooner, the head of derivatives at Bitfinex, noted that while we broke out of our lower timeframe range, it is important to remember that after a mass liquidation event amounting to over $2 billion in liquidations in 2 days starting April 12th, the market depth is considerably lower than a few weeks ago.
Kooner is optimistic about Bitcoin’s price action in the short term, but warned of another potential liquidation as more leverage starts re-entering the markets.
To confirm a decisive move towards new highs, Bitcoin first needs to overcome the $69,000 mark. Haralampiev stated that key levels to confirm the bullish sentiment and price movement are in the $69,000 – $70,000 bracket.
Bitcoin is facing significant resistance at the $67,000 mark. A potential move above the $69,000 mark would liquidate over $1.12 billion worth of short-leveraged positions.
