Key Takeaways
Bitcoin has risen by more than 10% over the past three days.
Buy signals are starting to show up on the larger timeframes.
As long as BTC can stay above $39,500, it could hit $46,350.
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Bitcoin appears to be preparing for a bullish impulse as on-chain metrics show signs of increasing demand and little to no resistance ahead.
Bitcoin Has the Potential to Surge
Bitcoin has reclaimed a crucial support level and appears to have plenty of room to go up.
The flagship cryptocurrency has risen by more than 10% over the past three days, gaining more than 4,000 points in market value. The sudden price increase appears to be correlated with a spike in demand in the spot markets. On-chain analysts Willy Woo reported an uptick in buying pressure of $1.2 billion of BTC.
From a technical perspective, the Tom DeMark (TD) Sequential indicator presents a buy signal on Bitcoin’s bi-weekly chart. The bullish formation developed as a red nine candlestick. Further buying pressure could help validate the optimistic outlook, resulting in two to eight weeks of upside.
Source: TradingView
Transaction history shows that the pioneer cryptocurrency was able to claim a critical support level after the recent upswing.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model suggests that as long as Bitcoin continues trading above $39,500, it will have a chance to advance towards $46,350. This is the most significant resistance area ahead as more than 865,500 addresses had previously purchased nearly 705,000 BTC around this price level.
Source: IntoTheBlock
It is worth noting that the TD setup has accurately anticipated market tops and bottoms on Bitcoin’s bi-weekly chart. It was even able to forecast the November 2021 top, when BTC traded at an all-time high of nearly $69,000, which adds credence to the optimistic outlook.
Still, a decisive bi-weekly close below $39,500 could spell trouble for the bellwether cryptocurrency. Breaching such a critical area of support could send Bitcoin to $34,400, and if this level fails to hold, a capitulation event may occur.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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