Bitcoin's Local Market Structure Could Drive BTC Price To New All-Time Highs

Analysts believe that Bitcoin's recent price movements may indicate the start of a journey toward new all-time highs.

Source: www.dlnews.com

Bitcoin is currently trading 16% above its local low of $52,546, reached on September 6, leading analysts to suggest that this reversal may signal the beginning of a path to new all-time highs. Bitcoin's local structure has turned bullish after closing above the previous September high and establishing a higher low, analyst Jelle noted in a September 17 post on X.

He pointed to Bitcoin's recent peak of $60,670 on September 13, which surpassed the September 3 high of $59,830. This setup indicates that the market could be strong enough to break through the resistance at $65,000 and eventually tackle the congestion around all-time highs. The local bullish shift looks promising, added analyst Altstein Trader, suggesting that breaking the $65,000 level could open the door to new records.

Meanwhile, prominent crypto analyst Trades observed that Bitcoin was trading near the midpoint of a descending parallel channel at $57,902. Data showed that Bitcoin gained about 5% following the Wall Street opening on September 18, climbing above the $59,300 to $60,738 resistance zone, where the 50-day, 100-day, and 200-day exponential moving averages currently reside. This surge allowed BTC to reach an intraday high of $61,331 before retreating to $60,540 at the time of publication.

As mentioned earlier, Bitcoin needs to convert this barrier into support to maintain its bullish momentum. According to the analyst, this is an interesting spot, as a 5% move above this level could lead to a larger 10% increase. A 15% rise from $57,900 would push the BTC price above $66,000. Supplier congestion around the $60,000 mark has emerged as a significant resistance hurdle for Bitcoin, to data from. Their in out of the money around price IOMAP model reveals that Bitcoin faces considerable resistance at this level.

The $60,000 barrier is particularly noteworthy as it coincides with the $60,465 and $62,278 price range, where about 604,760 BTC were previously purchased by approximately 1.53 million addresses. This accumulation creates a formidable obstacle for Bitcoin's price, making it essential for the cryptocurrency to overcome this resistance to maintain upward momentum. Breaking through this level could pave the way for further gains, while failure to do so may result in a consolidation phase or potential pullback.

The liquidation heat map indicates that approximately $40.13 million in ask orders is positioned around the $60,000 level, contributing to the strength of resistance at this price point. In addition, there has been a notable rise in the futures sentiment index since the start of the year. Historically, increases in this metric have often preceded significant price surges. With an impressive 89% correlation to price jumps across four cycles, Bitcoin appears to be well-positioned for potential growth.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.