Bitcoin surpasses $70,000. Crypto analysis of March 12, 2024

Bitcoin reaches new all-time highs, crossing $72,000. Let’s analyze the future prospects for the BTC price together.

Bitcoin (BTC) Situation

Following a favorable week, Bitcoin has reclaimed its record level, initially reaching $69,300 before undergoing a 14% correction. It then rebounded from $60,000 to establish a new peak at $70,200. Despite a weekly close slightly below the psychological threshold of $70,000, Bitcoin has started this week on a positive note, surpassing this level to approach $72,000. This trend underscores the continuity of investor interest and confirms a definitive break with the old record, signaling that the rally is still underway.

At the time of writing this article, the Bitcoin price is trading just below $72,000. Therefore, it is above the value zone located around $67,000. BTC has detached from its 50-day moving average, indicating a period of high volatility which could require adjustment. The bullish momentum of Bitcoin is continuously re-evaluated upwards, as clearly shown by the oscillators, which even suggest the possibility of an excessive period of demand for Bitcoin.

The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. He now trains at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Live sessions, educational content, and mutual support around financial markets in a professional and warm atmosphere.

Focus on Derivatives (BTCUSDT)

We can observe that the open interest of perpetual BTC/USDT contracts has managed to rebound after falling following the rejection of the ATH. It is noteworthy that this last scenario led to a reduction of 2 billion dollars in open interest on perpetual futures contracts on Bitcoin, with nearly 43 million dollars resulting from liquidations of long positions. The funding rate for Bitcoin seems to have picked up, suggesting that speculative interest is primarily directed towards buying. However, it is important to note that a high funding rate on the derivatives markets can increase costs for long positions and encourage short positions, thereby increasing volatility and the risk of liquidation,

The liquidation heat map for BTC/USD shows that recently, its price crossed a significant liquidation area around $70,500. The fact that the Bitcoin price remains above this level demonstrates persistent buying interest. Currently, the most marked liquidation zones are above the current price, at $73,000, and below, around $71,000. Further down, the $66,000 zone is also noteworthy. As the market approaches these levels, we could witness a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. These areas hence represent significant points of interest for investors.

Hypotheses for the Bitcoin (BTC) Price

If Bitcoin manages to stay above $69,000, a new climb towards $73,000 could be on the horizon. The next potential resistances might be around $75,000, or even $76,000. Beyond that, the target of $80,000 would become conceivable, which would represent an approximately +10% increase from the current level.

If Bitcoin fails to hold above $69,000, a buyer support zone could manifest around $66,000. In case the downward trend continues, the next critical threshold would be in the vicinity of $62,000. Such a drop would then represent a retreat of approximately -14%.

Conclusion

Bitcoin has achieved a new record high of $70,200 after a correction, demonstrating the persistence of buyer interest despite a weekly close below $70,000. Volatility remains high, with positive technical signals favoring an upward trend. However, it will be crucial to closely observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also essential to remain vigilant regarding potential market “fake outs” and “squeezes” in each scenario. Lastly, let us remember that these analyses are based solely on technical criteria, and that the cryptocurrency price can also rapidly evolve based on other more fundamental factors.