Bitcoin remains strong amidst selling pressure, staying above the 20-day moving average. With the current price over $69,000, it signals that the bulls are gearing up for more upward movement in the near future.

Although Bitcoin faces resistance at $72,000 at the moment, breaching this level could potentially lead to surpassing all-time highs and entering new price territory by Q2 2024.

Speculators Show Interest: Potential for Bitcoin to Extend its Rally

Based on on-chain analysis, experts suggest that Bitcoin may see new highs soon. The analysis focuses on the behavior of short-term BTC holders, hinting that there could be more to come in terms of price gains.

Recent data shows an uptick in the realized market cap for Bitcoin holders of one month or less, a trend that historically precedes upward market movements prompted by a fresh influx of capital.

Another metric reveals that short-term holders have seen a 32% decrease in realized profits, indicating their willingness to hold onto their positions in anticipation of future price increases. This positive sentiment reflects an optimistic market outlook.

Bitcoin Volatility Expected at $72,000 Resistance Level

With the return of short-term holders, there has been a notable increase in BTC transfers from spot exchanges to derivatives platforms. This shift implies that more investors, particularly whales, are taking leveraged positions, which could result in increased market volatility favoring traders.

While on-chain indicators suggest confidence, the future price action of Bitcoin remains uncertain. Currently, the immediate liquidation point stands at $72,000, signaling a crucial price level to watch.

To continue the upward trend, Bitcoin needs to confirm gains from June 3 by closing convincingly above $72,000, potentially propelling the cryptocurrency past $74,000.