Bitcoin is approaching key support levels, but analysts are urging caution. After a recent rally, Bitcoin is now close to its August high, which some experts say could push it to new all-time highs. As of Tuesday’s European trading hours, Bitcoin is priced at $63,710, reflecting a 0.4% increase over the past 24 hours and a 9% gain over the last week, according to CoinGecko.
Fairlead Strategies, in its Cryptocurrency Compass report, pointed out that Bitcoin is currently testing resistance at its 200-day moving average, which is around $63.9K, aligning with its previous August peak. However, the firm warned that Bitcoin is “short-term overbought,” meaning a price drop could occur before any potential surge.
A report from Bitfinex Alpha also emphasized the importance of Bitcoin reaching $65,200, the August 25 high. This level is critical because Bitcoin hasn’t surpassed a previous high since its all-time peak of $73,666 in March, suggesting that the market could be forming a new bottom.
Valentin Fournier, an analyst at BRN, observed that Bitcoin’s volatility is easing and its price is holding above the key $62,500 support level. While this could signal potential further gains, Fournier cautioned that the relative strength index (RSI)—which measures how fast and how far an asset’s price has moved—is still high, meaning a reversal could be near. He advised maintaining moderate investment levels to capture gains while guarding against a possible short-term dip.
Meanwhile, cryptocurrency ETFs are showing mixed results. Bitcoin spot ETFs saw a net inflow of $4.5 million on Monday, with contributions from Fidelity and BlackRock. However, Grayscale’s GBTC saw a significant outflow of $40.3 million. Ethereum ETFs faced even steeper outflows, with $79.2 million in net losses, led by Grayscale’s ETHE. Despite this, Ethereum remains resilient, trading at $2,655, up 0.5% in the last 24 hours and 15% for the week.
Bitfinex’s report also raised concerns that much of Bitcoin’s recent price action might be driven by futures and perpetual contracts rather than spot trading, as open interest (OI) in these markets has climbed to $19.43 billion while Bitcoin’s price is still below the local high by about $1,000.