BTC targets $70,000, but will there be a correction before then?

The worth of Bitcoin has been rising considerably over the previous few weeks, reaching new all-time highs.

technical evaluation

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day by day chart

Trying on the day by day chart, BTC value has been climbing since bouncing off the $56,000 help and the 200-day transferring common.

The market has regained the $60,000 and $65,000 ranges and is at the moment testing $68,000 – the final hurdle to a brand new all-time excessive.

With the RSI additionally exhibiting clear bullish momentum, it would simply be a matter of time earlier than Bitcoin reaches new document highs.

4 hour chart

Trying on the 4-hour chart, the worth continues to make larger highs and lows with minor retracements. This can be a clear signal of a bullish pattern.

Nevertheless, there’s a worrying signal: a bearish divergence between value and the Relative Power Index. Due to this fact, a correction is probably going within the brief time period earlier than costs transfer to new highs.

sentiment evaluation

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Bitcoin financing charges

Whereas the worth of Bitcoin has climbed again above $65,000, buyers are questioning whether or not the market will attain a brand new all-time excessive quickly. Judging from the sentiment within the futures market, this appears doubtless.

This chart reveals the Bitcoin Financing Fee indicator, which measures whether or not patrons or sellers are extra aggressively executing their futures positions (utilizing market orders).

It clearly reveals whether or not futures market sentiment is overheated.

Because the chart reveals, funding charges are properly beneath the identical ranges BTC was buying and selling at just some months in the past. This reveals that the futures market has cooled down considerably and is predicted to proceed to rebound within the coming weeks.