Bitcoin’s price has been on a strong upward trend recently, approaching a new all-time high. On the daily chart, we can see that the price has been steadily climbing after bouncing off the $56K support level and the 200-day moving average. It has surpassed both the $60K and $65K marks and is now testing the $68K level, which is the final obstacle before reaching a new record high. The RSI indicator also shows clear bullish momentum, indicating that new record highs could be on the horizon.
Looking at the 4-hour chart, we see that the price has been consistently making higher highs and higher lows, with only minor pullbacks. This is a strong signal of a bullish trend. However, there is a potential cause for concern as the price is showing a bearish divergence with the Relative Strength Index. This could mean that a correction might be in store before the price continues its upward trajectory.
In terms of market sentiment, the Bitcoin Funding Rates metric provides some insight into whether the market is overheated or not. Currently, the funding rates are much lower than they were a few months ago when Bitcoin was trading at similar prices. This suggests that the futures market has cooled down significantly, potentially paving the way for a sustainable rally in the near future.
Overall, while Bitcoin’s price is showing signs of a strong upward trend, investors should be cautious of a possible correction in the short term. It’s important to conduct thorough research and analysis before making any investment decisions in the volatile cryptocurrency market.