The analyst believes that the world’s largest digital currency may target $78,000

• Buying pressure has increased recently, pointing to future price increases

After dropping to $60,000,  Bitcoin [BTC] bulls  have retaken control of the market over the past 24 hours. what next Well, some analysts believe that the world’s largest cryptocurrency may soon chart a path towards $78,000. 

Bitcoin trail tracing

AMBCrypto  has previously  reported  that Bitcoin has recently been in a consolidation phase. In fact,  CryptoQuant founder and CEO Ki Young Ju  noted that we are on track for the longest sideways price action in a half- year .

In addition, Ali, a popular crypto analyst, also   shared a tweet that revealed the possible direction of Bitcoin. According to this tweet, the price of Bitcoin has stabilized inside a channel. While the coin initially fell to $60,000, it then rose to $66,000 on the chart. 

Following the same trend, the coin once again fell to 57 thousand dollars. At the time of publication, Bitcoin was showing signs of recovery as its value increased by 3% in the last 24 hours alone.

If the recent upward momentum continues, this could be the start of the road to $78,000. 

The way to BTC is ahead

Since the above analysis pointed to a possible breakout of $78k, AMBCrypto planned to examine the BTC chain data. According to our analysis of Glassnode data, Bitcoin has just broken through its potential market low.

If you believe the Pi Cycle Top indicator , then the chances of Bitcoin going above its current ATH are high right now. That may be true, especially since the benchmark shows the top of the market at $112,000. 

Bitcoin’s NVT ratio has also decreased over the past week. A decline in the metric means that an asset is undervalued, indicating that an uptrend may soon begin.

Separately, AMBCrypto’s analysis of  CryptoQuant data  revealed another bullish signal. Bitcoin currency reserves have decreased. What this suggests is that buying pressure on Bitcoin is increasing – a finding that often leads to higher prices. 

On the derivatives front, too, things are looking very bullish at the moment.

For example, the buyer’s buy/sell ratio turned green. This clearly meant that the willingness to buy was stronger among futures investors. In addition, the coin financing rate also increased. 

 

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Finally, AMBCrypto looked at Bitcoin’s daily chart to see if there are critical resistance levels before retesting the ATH .

We noticed that Bitcoin might be headed in the right direction as it seemed to be approaching its resistance at $65.4k. A successful breakout pushes the coin to $68,000. If the coin manages to jump above that, investors may see BTC retest its  ATH .