Bitcoin’s price is located in a key area at the moment and is one bullish breakout away from rallying toward a new all-time high.

By Edris Derakhshi (TradingRage)

The Daily Chart

On the daily chart, the price has been rallying consistently over the past few days, following its rebound from $60K. With BTC also being above the 200-day moving average, which is located around the $64K level, the market can be considered bullish once again.

Therefore, it might only be a matter of time before BTC breaks above the $69K resistance level and climbs its way toward a new record high.

The 4-Hour Chart

The 4-hour chart also demonstrates clear bullish price action, with the market consistently making higher highs and lows. However, a worrying signal is emerging, as the RSI shows a clear bearish divergence between the two recent price highs.

If the market fails to break above the $69K resistance zone soon, a correction toward the $64K level would be probable.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Bitcoin Open Interest

Bitcoin’s price seems determined to create a new all-time high in the coming weeks, as it’s approaching the $70K level with momentum. Meanwhile, optimism is also going through the roof as investors expect a new long-term rally to begin.

This chart demonstrates the Bitcoin open interest metric, which measures the number of open perpetual futures contracts. It’s a proxy for futures market sentiment, showing aggregate participation and optimism.

As seen, the open interest even leads the price, as it has already shown higher values over the past couple of years. While participation is necessary for a bull market, too much optimism might lead to an overheated futures market and, consequently, a long liquidation cascade, which would ultimately result in a crash.