Bitcoin Price Analysis: BTC Bulls Eye $70K But is a Correction Coming Before That?

Bitcoin’s price has been rallying aggressively in the past couple of weeks, making its way toward a new record high.

Technical Analysis

By TradingRage

The Daily Chart

On the daily timeframe, the BTC price has been climbing higher since rebounding from the $56K support level and the 200-day moving average.

The market has reclaimed both the $60K and the $65K marks and is currently testing $68K – the last obstacle in the way of a new all-time high.

With the RSI also indicating clear bullish momentum, it might only be a matter of time before Bitcoin makes new record highs.

The 4-Hour Chart

Looking at the 4-hour chart, the price has consistently made higher highs and lows, with minor pullbacks. This is a clear indication of a bullish trend.

Nevertheless, there is one worrying signal: the price is making a bearish divergence with the Relative Strength Index. Therefore, a correction might occur in the short term before the price rises to a new record high.

Sentiment Analysis

By TradingRage

Bitcoin Funding Rates

While Bitcoin’s price has increased back above the $65K level, investors are wondering whether the market can make a new all-time high soon. Looking at the futures market sentiment, it looks somewhat probable.

This chart demonstrates the Bitcoin Funding Rates metric, which measures whether the buyers or the sellers are executing their futures positions more aggressively (using market orders).

It provides a clear indication of whether the futures market sentiment is overheated or not.

As the chart suggests, the funding rates are much lower than they were a few months ago when BTC was trading around the same prices. This indicates that the futures market has cooled down significantly, and a sustainable rally can be expected in the coming weeks.