Bitcoin (BTC) Rally: Is $65K a Realistic Target or a Potential Trap? Analyzing the Resurgence of the Bull Market

• Bitcoin experiences a downtrend, breaking below the significant support zone of $59K, but a bullish rebound near the 100-day MA suggests potential for a resurgence in buying pressure.
• Technical analysis of the daily and 4-hour chart reveals a possible bullish trend in the mid-term, provided the price remains above the critical $59K level.
• On-chain analysis of the Bitcoin Short-Term Holder (STH) Realized Price metric indicates the overall trend remains bullish as long as the price stays above the short-term participants’ realized price.

Bitcoin’s recent downtrend breaks significant support zone, but a bullish rebound hints at potential resurgence. Technical and on-chain analysis suggest a positive mid-term outlook if key price levels are maintained.

Bitcoin’s Downtrend and Subsequent Bullish Rebound

After an extended period of sideways consolidation, Bitcoin witnessed a downtrend, breaking below the significant support zone of $59K. However, a notable bullish rebound near the 100-day MA suggests the potential for a resurgence in buying pressure.

Technical Analysis: Daily and 4-Hour Chart

Upon a comprehensive review of the daily chart, it becomes evident that Bitcoin underwent an extended phase of sideways consolidation within the pivotal price range of $59K to $72K. The recent price action saw a decline, breaching the lower boundary of this range and the 100-day moving average. This bearish movement resulted in the liquidation of many long positions, leading to a cooling-down period in the perpetual markets. Nevertheless, Bitcoin found significant support at a crucial zone, the 0.618 ($59,395) Fibonacci retracement level, aligned with the vital 100-day moving average at $59K. This region sparked a bullish reversal, raising expectations for a renewed positive trend in the mid-term.

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