These 2 Factors Will Determine if Bitcoin Makes It to $70,000

Bitcoin’s recent price action has sparked discussions about the possibility of breaking its all-time high of $73,780. The formation of a bullish double-bottom pattern suggests that a rise beyond this level is achievable. 

However, Bitcoin needs to overcome a significant resistance barrier before this can occur. The market is closely watching to see if these signals align with broader market cues that could propel BTC toward $70,000.

Bitcoin Investors’ Optimism Is Deadly

Historical patterns indicate that Bitcoin may be on the verge of a reversal. Data from Santiment suggests that positive commentary from investors and traders is often a bearish sign for the cryptocurrency. In the past, price drops have followed instances when the overall market sentiment turned overly optimistic. This trend could play out again, making investors cautious despite bullish price patterns.

Whenever investor sentiment peaks, a sharp correction has typically followed. If this pattern holds, Bitcoin might face downward pressure in the short term. While the double-bottom pattern offers hope for a breakout, positive market sentiment could act as a counterforce, keeping Bitcoin from reaching new highs.

Read more: What Happened at the Last Bitcoin Halving? Predictions for 2024

On the other hand, the broader macro momentum for Bitcoin remains strong. The exchanges’ net position change, which tracks the movement of Bitcoin in and out of exchange wallets, has shown consistent outflows. This is generally seen as a bullish indicator because it suggests investors are moving their Bitcoin off exchanges, likely to hold for the long term.

These consistent outflows imply that investors are optimistic about Bitcoin’s price trajectory, counteracting the broader market cues of bearish sentiment. While this doesn’t guarantee a rally, it suggests that many investors remain confident in Bitcoin’s future performance, which could help stabilize the price.

BTC Price Prediction: A Key Break

Bitcoin is currently trading at $63,928 after a minor drop on Monday, following a brief rally. The bullish double-bottom pattern suggests a potential rise of 20.44% upon breakout, which would set the price target at $75,979. This would push Bitcoin beyond its previous all-time high.

However, market conditions indicate that consolidation may be more likely than a sustained rally. Bitcoin has already bounced off $63,068 but still needs to breach the resistance at $67,504. Given the strength of this resistance, it may prove difficult for Bitcoin to break through in the near term.

Read more: Bitcoin Halving History: Everything You Need To Know

If Bitcoin does manage to breach the $67,504 resistance, a rise toward $70,000 becomes possible. This would invalidate the current bearish-neutral outlook and amplify investor profits, setting the stage for further upward momentum.