Bitcoin price reached a new peak above $64,200 on March 4, driven by bullish traders anticipating the resumption of ETF trading. Despite a 6% retracement from the peak, on-chain data indicates that speculative traders are doubling down on their bullish bets.

Bitcoin Traders Increase Leveraged Bets

Traders have raised leveraged bets by 300% compared to last week, showcasing strong confidence in Bitcoin’s upward potential. The recent milestone of surpassing $64,000 for the first time in 840 days signals a significant shift in market sentiment.

Market Dynamics and Funding Rates

Following the closure of Bitcoin ETFs on March 1, buying pressure cooled, leading to a brief retracement toward the $60,000 support level. However, key on-chain data reveals that traders remain overwhelmingly bullish, with funding rates reaching unusually elevated levels.

Current funding rate trends suggest that Bitcoin bulls are willing to pay record fees to maintain their long positions, anticipating a potential upswing in the near future.

The 300% increase in the aggregate funding rate compared to last week underscores the optimism among traders regarding Bitcoin’s price trajectory. This positive sentiment is further supported by the majority of Bitcoin holders currently in profitable positions, reducing selling pressure and bolstering support levels above $60,000.

Bitcoin Price Forecast: Reaching $70,000

If the current market dynamics persist, Bitcoin price is poised to advance towards $70,000 in the coming week. While challenges may arise as prices approach $65,000, the overall bullish sentiment and strong support levels indicate a potential for a new all-time high.

However, profit-taking from a cluster of long-term holders could temporarily slow down the rally. Despite this, the overall outlook remains positive, with the possibility of reclaiming $70,000 on the horizon.

Stay informed about the latest developments in the cryptocurrency market by exploring more news on Global Crypto News.

Post Views: 6