BTC Can Aim for New All-Time High Only if It Holds This Crucial Level: Bitcoin Price Analysis

Bitcoin's price has once again struggled to reach a new all-time high over the past week. However, there are indications that the bullish market trend may still be intact.

Technical Analysis

The Daily Chart

On the daily chart, Bitcoin has faced resistance at the $74,000 level and is currently testing the $69,000 support zone. If this support holds, it could pave the way for a potential record high in the near future. Conversely, if the price breaks down, the next critical level to watch would be the 200-day moving average, which is situated around $64,000. Overall, the market structure remains bullish, suggesting that a new rally could be on the horizon.

The 4-Hour Chart

Analyzing the 4-hour chart reveals that Bitcoin recently broke below an ascending channel and has struggled to recover since. Currently, a double-bottom pattern is forming at the $69,000 support level, accompanied by a bullish RSI divergence. A bullish continuation is likely if Bitcoin can reclaim the $70,000 mark and re-enter the channel. However, if the $69,000 support fails, a correction towards the $64,000 level may occur.

On-Chain Analysis

Bitcoin Active Addresses

Despite Bitcoin's price recovering from a recent correction, a key metric remains low. The 100-day moving average of active Bitcoin addresses shows that network activity is at its lowest in the past couple of years, which is concerning. However, there is a gradual increase in the number of active addresses, which often signals the beginning of a bullish trend. If this growth in network activity continues, higher Bitcoin prices could be anticipated soon.