A new analysis is causing a stir in the cryptocurrency world, suggesting that Bitcoin’s correction phase may have finally come to an end. Experts are now predicting a potential surge towards the coveted $70,000 mark.
According to a report by 10x Research, trading signals have shifted significantly, with long positions now reaching 70% net long for the first time. This shift indicates a favorable buying opportunity for both Bitcoin and Ethereum, with a 2-3 month horizon for potential growth.
The report highlights that weekly reversal indicators are showing signs of bottoming out for the first time since the correction began in March. This signals a more positive outlook for the leading cryptocurrency. Further supporting the bullish sentiment, Bitcoin’s weekly Relative Strength Index (RSI) is attempting to establish a medium-term low at 50%.
Key support levels are identified at $52,599 and $56,000, with resistance at $64,490. Analysts suggest that a break above the August short-term high of $64,490 could propel Bitcoin towards $70,000 or beyond.
Adding an interesting dynamic to the market is the recent 50 basis point rate cut by the Federal Reserve. While historically, such cuts have led to short-term rallies in Bitcoin, lasting 1-2 weeks, the long-term impact remains uncertain. Fed Chair Powell’s cautious framing of the rate cut has left room for interpretation regarding the broader economic outlook.
Interestingly, funding rates for Bitcoin and Ether have returned to double digits, indicating significant bets from futures traders. This renewed momentum is primarily driven by activity in the futures market, with rising trading volumes in Korea suggesting increased participation from retail investors.
As the cryptocurrency market enters the historically bullish fourth quarter, many eyes will be on the Future of Digital Assets event on November 19. With the recent developments, the potential for Bitcoin to surge towards $70,000 seems more likely than ever, leaving investors and analysts alike eager to see what the future holds for the leading cryptocurrency.
