BTC breaks above $68,000 as traders fight for a rally at ATH

The price of Bitcoin is in a key area at the moment and it is a bullish breakout of the recovery towards a new all-time high.

Bitcoin Price Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the price has been steadily rising over the past few days, following the $60,000 rally. With BTC also above the 200-day moving average, which is around the $64,000 level, the market can be considered bullish once again.

Therefore, it may only be a matter of time before BTC breaks through the $69,000 resistance level and climbs to a new record high.

Source: TradingView The 4-hour chart

The 4-hour chart also shows clear bullish price action, with the market consistently making higher highs and higher lows. However, a worrying signal is emerging as the RSI is showing a clear bearish divergence between the two recent price highs.

If the market does not break the $69,000 resistance zone soon, a correction towards the $64,000 level would be likely.

Source: TradingView On-Chain Analysis

By Edris Derakhshi (TradingRage)

Bitcoin open interest

Bitcoin price looks set to create a new all-time high in the coming weeks as it approaches the $70,000 level with momentum. Meanwhile, optimism is also going through the roof as investors hope a new long-term recovery will begin.

This chart shows Bitcoin’s open interest metric, which measures the number of open perpetual futures contracts. It is an indicator of futures market sentiment, showing aggregate participation and optimism.

As seen, open interest even leads the price, as it has already shown higher values ​​over the past two years. Although participation is necessary for a bull market, too much optimism can cause the futures market to overheat and consequently lead to a long liquidation cascade, which would eventually result in a crash.

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