Bitcoin price has extended its latest uptrend, surging past the $78,000 mark as significant buying interest takes the top-ranked cryptocurrency closer to its next key supply level.
At the time of writing, BTC is trading at $77,819, up 8.45% over the last 24 hours. BTC is recording approximately $106.78 billion in daily trading volume, while its market capitalization has reached about $1.57 trillion.
Bitcoin Price Faces Limited Resistance Ahead
In a post on August 21, a popular crypto analyst, Ali Martinez, mentioned the existing market structure of the Bitcoin price and noted the absence of resistance above the present price level.
As per the technical analysis, the cryptocurrency had set up an important support level between $61,849 and $63,111. More than 2 million Bitcoins had been traded around this range.
This zone would come into play especially in case of any pullback by Bitcoin since much Bitcoin was traded around that zone, so the $61,849-$63,111 zone may turn out to be a major support level in case of selling pressure.
More significantly, according to UTXO Realized Price Distribution (URPD), there is not much supply between the current level of Bitcoin and the upcoming zone.
According to Martinez, another important level is $75,733. Provided Bitcoin trades above this level, the following important zone will be $83,307-$84,569. At least 1 million BTC were traded within this price zone.
That is to say, Bitcoin may have more opportunities to move higher since there is a relatively small amount of transactions in the upcoming price zone.
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Technical Indicators Strengthen the Bullish Case
The technical construction of Bitcoin’s price is also experiencing indications of increased upward pressure.
BTC has hit the price of $78,133.95, which is above its upper Bollinger Band of about $72,841.94. The middle Bollinger Band is located at $65,358.79, while the lower one is around $57,875.63.
Trading above the upper Bollinger Band indicates the momentum of the asset; however, at the same time, it may indicate rapid growth and make the asset subject to short profits.
Additionally, momentum indicators are also confirming the recent rally. The MACD line is seen at 1,904.96, which is way higher than the signal line of 543.84. The histogram is seen at 1,361.13, indicating the substantial growth of upward momentum.
From all these pieces of information, one can conclude that the current rally of Bitcoin price is being supported by considerable buy pressure and not a mere technical bounce.
What Happens Next for Bitcoin Price?
The next crucial point is whether BTC will be able to hold above $75,733.
If Bitcoin price stays above this level and further continues to form bullish momentum, then the area of $83,307-$84,569 will be the next important zone to monitor, as a breakout of it will be rather meaningful, as this is a much bigger historical supply zone.
Otherwise, if BTC fails to do so and moves below $75,733, then the next important support zone will be $61,849-$63,111.
At this point, the robust performance of Bitcoin on a daily basis, coupled with rising volumes and momentum metrics, has brought the focus back on higher prices. The important point here is that Bitcoin is now trading in an area that has seen limited resistance in the past, according to its trade history.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
