Bitcoin's recent rally has put it within striking distance of its August monthly high, a level analysts say could hit a new all-time high.
During European trading hours Tuesday, Bitcoin was trading at $63,710, up 0.4% over the past 24 hours and up roughly 9% over the past week, according to CoinGecko data.
Fairlead strategies shared with Cryptocurrency Compass report that Bitcoin has extended its rally, now testing resistance above the 200-day moving average (~$63.9K), which matches its August high.
The firm warned of “short-term overbought conditions.”
Meanwhile, a recent Bitfinex Alpha report highlighted the significance of the August 25 high of $65,200 shared with Decrypt.
The report highlights the importance of Bitcoin's recent price movements in relation to the previous high, while BTC is now within touching distance of the top of $65,200 on August 25. “The reason why this level is important is that after reaching the high of $73,666 on March 14th, BTC still failed to break a high before forming a local/new bottom.”
Valentin Fournier, an analyst at BRN, said that the volatility of Bitcoin has decreased and the price has remained above the $62,500 key. This may pave the way for further gains, but the relative strength index (RSI) is still high, indicating that a reversal may be imminent.
The Relative Strength Index tracks the speed and magnitude of an asset's recent price changes to identify overvalued or undervalued situations in the price.
“We recommend maintaining a medium level of exposure to capture the benefits that can be gained by waiting for the possibility of a recent dip,” he said.
According to data from Soso Value, the cryptocurrency market continues to see mixed flows in ETF products.
On Monday, Bitcoin spot ETFs saw a total net inflow of $4.5 million, with Fidelity's (FBTC) and BlackRock's (IBIT) inflows of $24.9 million and $11.5 million, respectively. That was replaced by Grayscale (GBTC), which experienced $40.3 million in outflows.
In contrast, Ethereum spot ETFs recorded a total net inflow of $79.2 million on the same day. Greyscale's ETHE led the flow with $80.5 million, while Bitwise's ETHW bucked the trend with $1.3 million in flow.
Despite the ETF's exit, the price of Ethereum has shown resistance, currently at $2,655, up 0.5% in the last 24 hours and up 15% in the past week.
The Bitfinex report also raised concerns over the nature of Bitcoin's recent price movements and derivatives movements.
“Hey [open interest] Now at $19.43 billion, the price is still $1,000 below the local high,” the analysts wrote. This may suggest that much of the current movement in the BTC price is driven by BTC futures and futures trading, rather than spot market activity.
Edited by Stacy Elliott.
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