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Bitcoin (BTC), the world’s largest cryptocurrency by market cap, has breached one of the largest consolidations and is poised for a significant upside rally. On October 18, 2024, BTC broke out of the large descending channel pattern it had been moving since March 2024.
Bitcoin Technical Analysis and Upcoming Levels
According to the expert technical analysis, BTC appears bullish not only because of the recent breakout but also because it has breached a strong descending channel pattern it has been following since March 2024. However, BTC underwent a brief consolidation at the upper boundary of the channel pattern before breaking out, which indicates a genuine breakout.
Following this breakout, it is likely confirmed that BTC is poised for a significant upside rally. Based on the historical price momentum, there is a strong possibility that the asset could reach the $72,000 level and has the potential to hit a new high in the coming days.
As of now, it is crucial for BTC to close a daily candle above the $68,800 level to confirm this breakout. If this occurs, it will be a bullish sign for BTC holders.
BTC’s Bullish On-Chain Metrics
BTC’s positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, BTC’s Long /Short ratio over the past hours stands at 1.19, indicating a strong bullish sentiment among traders following the breakout.
Additionally, its future open interest has soared by 3.9% over the past four hours and 2.36% in the most recent hours. This rising open interest suggests growing participation and interest from traders.
Traders and investors often view rising open interest and a long/short ratio above 1 as favorable conditions for building long positions. According to on-chain data, 54.45% of top traders currently hold long positions, while 45.55% hold short positions.
Current Price Momentum
At press time, BTC is trading near the $68,800 level and has experienced a price surge of over 2% in the past 24 hours. During the same period, its trading volume increased by 18% and continues to rise, indicating strong participation from traders and investors as BTC prepares for a massive rally.