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Bitcoin hit $71,031 on June 6, just 3.5% below its all-time high, spurring market excitement and indicating potential new peaks.
Bitcoin’s price reached $71,031 on June 6, 2024, just 3.5% shy of its all-time high. This recent surge in Bitcoin’s value is drawing attention from the market, with historical data pointing to crucial resistance levels.
Analysts argue that the current trend suggests a potential new peak, supported by technical analysis and market sentiment.
Historical Resistance Levels
Bitcoin’s price movements have shown key resistance points at several intervals. These include mid-March, early April, late April, mid-May, and early June. The most notable resistance level appears just below $74,100.
Surpassing this level could signal a new all-time high for Bitcoin. Historical peaks provide a roadmap of potential resistance points where Bitcoin might encounter selling pressure. If these levels are surpassed, it could indicate a robust upward trend, hinting at sustained market momentum.
The Technical Front
On the technical front, the daily chart offers a view of Bitcoin’s current technical status. The Relative Strength Index (RSI) stands at 62.83, indicating that the asset is neither overbought nor oversold but is approaching the overbought territory.
This suggests there is still some room for price appreciation, although caution is advised as it nears the overbought threshold.
The Stochastic Momentum Index (SMI) shows the %K value at 47.59 and the %D value at 28.24. The %K line above the %D line signals a potential buy, with values below 50 indicating that the market is not yet in an overbought condition, although bullish momentum is building.
Market Sentiment and Predictions
The proximity to an all-time high has sparked excitement and increased trading volume, leading to potential volatility.
Michael Saylor, founder of MicroStrategy, notes that global interest in Bitcoin is at an all-time high. Robert Kiyosaki, author of “Rich Dad Poor Dad,” predicts Bitcoin will reach $350,000 by August 2024, citing U.S. leadership issues and ongoing crypto support.
Historical data from analyst Michael Pizzino shows Bitcoin typically reaches new all-time highs within two years of its cycle lows.
#Bitcoin historically reaches a new all-time high within 2 years from its cycle low.
Jan 2015 Cycle Low
103 Weeks until new All-Time HighDec 2018 Cycle Low
103 Weeks until new All-Time HighNov 2022 Cycle Low
??? Weeks until new All-Time High pic.twitter.com/1PLpeuL1nZ— Michael Pizzino (@PizznioMichael) May 26, 2024
With the last cycle low in November 2022, this trend suggests a new peak may be imminent. Recent price actions, such as surpassing $66,000 in May, reinforce this outlook, indicating strong market confidence and the potential for new highs.