Bitcoin Surges 4.24% Reclaiming Bullish Stance

Bitcoin (BTC) recently achieved its best weekly performance in over two months, surging 4.24% to an intra-day high of $88,804. This upward movement allowed BTC to reclaim a bullish stance on the charts, closing above the daily chart’s 200-day exponential moving average (EMA).

With a weekly close above $84,600, the likelihood of BTC testing $90,000 increases. However, for BTC to make a sustainable move at the range highs, it must overcome the descending resistance level.

Bitcoin researcher Axel Adler Jr. explained that based on onchain metrics, the current price cycle reflects a healthy consolidation rather than the beginning of a bear market. Adler Jr. noted that BTC has not yet entered “overheated” territory in this cycle, as indicated by BTC’s Investor Price Model. This metric flashed a sell signal twice during 2021 and incorporates the realized cap, thermo cap, investor price, and Bitcoin supply.

Using Bitcoin’s cumulative value days destroyed (CVDD), Adler argued that the market remains in a “growth stage.” The CVDD metric monitors selling activity among long-term holders. The current bull cycle (2024-2025) triggered a sell signal just once, back in March 2024. Adler Jr. predicted that Bitcoin could climb to $130,000 within 90 days.

Adler Jr. also noted that considering the current market dynamics, seasoned investors might take profits once Bitcoin breaches key peak levels ($123K), potentially exerting downward pressure on the price. However, this is based on the analyst's forecast and not actual data.

From a technical perspective, Bitcoin registered a new high at $88,750 over the previous week’s top. The price tested the upper Bollinger Band alongside the descending resistance. Additionally, BTC is also oscillating within an ascending channel. Based on this confluence, BTC could witness a short-term correction to test the demand zone around $86,000-$87,000 before breaking through the $90,000 threshold.