Bitcoin (BTC) is poised to initiate a FOMO-driven bull run as it approaches the critical level just below the previous all-time high (ATH), according to crypto analyst Axel Adler. This level, set at $69,500, is anticipated to trigger a wave of buying activity from those who previously sold their BTC during this cycle.
Adler pointed out that historical data reveals a pattern where each phase of maximum pre-ATH FOMO in Bitcoin’s price movement experienced its own “false start” moment over the past few years. The recent excitement in Q1 of 2024, fueled by the approval of Bitcoin spot ETFs in the U.S., exemplifies this trend of false starts quickly followed by disbelief.
In light of the recent rejection of Bitcoin above $70,000 by bears, the $69,500 mark is expected to serve as a critical point of equilibrium between buyers and sellers, similar to the price zone of $63,000-$64,000 witnessed three years ago.
On September 13, 2024, Bitcoin’s relative strength index (RSI) surged above 70 after weeks of subdued performance, indicating a possible overbought condition for the asset. This development raises concerns about a potential spike in Bitcoin’s volatility in the near future.
Furthermore, market analysts are warning of an impending storm in the crypto space following prolonged periods of lackluster performance by Bitcoin and major altcoins. The formation of a rare “triangular pattern” in the Bitcoin Coinbase Premium Index suggests that significant buyers and sellers are closely monitoring the market, potentially signaling a period of increased market activity.
Despite a 3.3% increase in price today, Bitcoin has failed to break the $60,000 resistance level and is currently trading at $59,764, accompanied by a slightly higher trading volume. As the crypto market braces for potential volatility, investors are advised to stay vigilant and monitor key price levels for trading opportunities.
