Bitcoin: A New Rise to $70,000 Raises Questions

On Sunday, April 7th, Bitcoin (BTC) marked another increase in its valuation. Its price, which had significantly dropped in the previous days to a level close to $65,000, found itself just over $70,000. With the halving just days away, this rise in the price of the flagship cryptocurrency has sparked speculation.

The battle for Bitcoin to hold at $70,000

Bitcoin has recently made a new breakthrough. The leading cryptocurrency indeed reached a peak of $70,230. A surge which actually represents an increase of 2.4% in its valuation from the previous day.

As usual, this Bitcoin trend has been closely scrutinized by analysts and investors. It has notably sparked speculation about its potential to establish a stable position at this coveted level.

Given the current market circumstances, reaching the $70,000 threshold has been a real challenge for the leading crypto. The efforts of optimistic investors to push Bitcoin above this level actually resulted in a price pullback of the asset.

It appears that Bitcoin is indeed actively struggling to maintain itself above this resistance level, as evidenced by its recent drop towards $65,000. Nevertheless, the crypto shows resilience while illustrating the volatility inherent in the crypto market.

#Bitcoin #BTC Price Surges Back Above $70K. Is This Another Bull Trap? https://t.co/dESeRBiro0

— MrCr4Nk (@MrCr4nk) April 7, 2024

Will Bitcoin claim victory?

The real question is whether Bitcoin has what it takes to maintain its momentum following its recent surge. It is anything but certain. An analysis of chart data even suggests the opposite may be unfolding.

Indeed, the TD Sequential, a technical indicator identifying the reversal possibilities of a market trend, has issued a sell signal on the four-hour chart. The data indicates a potential correction, confirming the predictions of crypto analyst Ali.

This data also reinforces concerns about the sustainability of Bitcoin’s recent surge. Even though, according to the Fear and Greed Index trends, investors are very eager for profits and are consequently willing to take high risks on Bitcoin.

Overall, the cryptocurrency’s recent flight to over $70,000 represents a significant achievement. However, the recurrent difficulty in consolidating gains at this level raises concerns about the durability of the current bullish momentum. Fears somewhat confirmed by Bitcoin’s slight drop, losing 0.12% of its value to settle around $69,380.