Bitcoin (BTC) has recently broken out of a major consolidation phase, signaling a potential significant upside rally in the near future. The breakout occurred on October 18, 2024, when BTC surpassed a large descending channel pattern that it had been following since March 2024.
Technical analysis experts suggest that BTC is currently in a bullish trend, not only due to the recent breakout but also because it has broken out of a strong descending channel pattern that had been in place for several months. The brief consolidation that occurred at the upper boundary of the channel pattern before the breakout further confirms the validity of the breakout.
Based on historical price momentum, there is a strong likelihood that BTC could reach the $72,000 level and potentially hit a new all-time high in the coming days. However, it is crucial for BTC to close a daily candle above the $68,800 level to confirm this breakout, which would be a positive sign for BTC holders.
In addition to the technical analysis, on-chain metrics also support a bullish outlook for BTC. Coinglass, an on-chain analytics firm, reports that BTC’s Long/Short ratio currently stands at 1.19, indicating a strong bullish sentiment among traders following the breakout. Moreover, BTC’s future open interest has increased by 3.9% over the past four hours and 2.36% in the most recent hours, suggesting growing participation and interest from traders.
Rising open interest and a Long/Short ratio above 1 are typically viewed as favorable conditions for building long positions by traders and investors. According to on-chain data, 54.45% of top traders currently hold long positions, while 45.55% hold short positions.
As of the latest update, BTC is trading near the $68,800 level, experiencing a price surge of over 2% in the past 24 hours. The trading volume has also increased by 18% during the same period, indicating strong participation from traders and investors as BTC gears up for a potential massive rally in the near future.