March 5, 2024 at 11:22 GMTModified date: March 5, 2024 at 11:22 GMT
March 5, 2024 at 11:22 GMT

Are Bitcoin bulls eyeing a new ATH above $70K?

Bitcoin’s value has already surged in the European morning hours, closely approaching its all-time high of $69,000 recorded in November 2021.

Are Bitcoin bulls eyeing a new ATH above $70K?

Bitcoin ($BTC) has been showing a strong performance, maintaining its position well above the $65,000 support zone. This has ignited discussions on whether it’s gearing up for a new all-time high (ATH) beyond the 2021 one which was formed around $69,000.

After establishing a solid support base, the top cryptocurrency has now embarked on a fresh rally, surpassing the $66,000 mark.

The coin’s value has seen over a 20% weekly increase, flirting with its previous all-time high, with a peak formed at $68,786.

Currently, Bitcoin is consolidating its gains, trading above the significant $66,800 level and the 100 hourly Simple Moving Average, showcasing a bullish trend in the market.

At the time of press, $BTC continued to emanate bullish signals on its charts. Technical indicators like the Moving Average (MA) and Awesome Oscillator (AO) were seen above their respective zero-lines, confirming the trend.

However, the Relative Strength Index (RSI) was noted in the overbought region, which hinted at a possible volatility in price. The Bollinger Bands also denoted the same as it widened away from each other.

Immediate resistance for Bitcoin is pegged near the $68,800 level, with eyes set on the $69,200 mark. A decisive break above these points could propel the digital currency towards the coveted $70,000 resistance zone.

This could then potentially pave the way to even higher valuations, such as the $71,200 and $75,000 levels.

Whale movements

The dynamics of Bitcoin’s market are often influenced by the activities of so-called “whales,” entities that hold large amounts of $BTC. Recently, there has been a notable increase in the number of these significant players. 

Analyst Ali, in a recent post on X, highlighted the growing correlation between the price movements of Bitcoin and the total number of entities holding at least 1,000 $BTC. 

Currently, owning 1,000 $BTC translates to a staggering value of approximately $66.5 million, underscoring the significant impact these players can have.

The number of these large-scale investors has been on the rise, indicating a potential accumulation phase in the market. This trend is noteworthy as movements by these whales can significantly impact market dynamics. 

Despite the potential for profit-taking, the increasing count of such entities suggests a strong buying pressure that could sustain the ongoing rally.

Adding another layer to the whale narrative is the activity of exchange-traded funds (ETFs), particularly the Grayscale Bitcoin Trust (GBTC), which has been noted for its significant $BTC outflows. 

While other ETFs have shown a trend of net buying, Grayscale’s selling activity has led to a net negative change in the holdings of Bitcoin ETFs, amounting to 3,686 $BTC in the past day. 

This activity is crucial as ETFs represent institutional interest and can be considered as part of the broader “whale” category due to the large amounts of Bitcoin they manage.

Global milestones 

Adding to Bitcoin’s list of achievements is its new record high against the euro, marking a significant milestone in its global valuation. 

On 4 March, Bitcoin achieved a historic feat by surpassing the 60,000-euro mark for the first time. This milestone is not just a number as it represented Bitcoin’s growing influence and acceptance across Europe and beyond. 

Since the beginning of the year, Bitcoin has seen a remarkable 56% increase in value against the euro, highlighting its impressive growth and increasing investor confidence in its potential.

This record-setting performance is part of a broader trend that has seen Bitcoin reaching new highs against various fiat currencies around the world. Notably, Bitcoin has also shattered previous records against the Chinese yuan (CNY), the world’s largest fiat currency by market capitalisation. 

Late February witnessed Bitcoin climbing to a new all-time high, surpassing its previous peak and signalling its growing appeal in one of the world’s largest economies.

Balaji Srinivasan, a prominent angel investor and former Coinbase CFO, pointed out that as of late February, Bitcoin had surpassed all-time highs in over 30 countries, including major economies such as China, India, Japan, South Korea, and Argentina. 

However, despite these achievements, Bitcoin still faces challenges in surpassing its all-time highs against several other major currencies, including the US dollar, British pound, Swiss franc, Brazilian real, and Mexican peso.