Bitcoin ($BTC) breached $55,000 earlier today to post a new 5-month high of $55,568 with a near 10% gain over the past 24-hours. The top cryptocurrency has managed to breach the key resistance of $55K but couldn’t hold onto the support and currently trading at $54,287.
The top cryptocurrency is looking to take the bullish momentum into the second week of October to extend the gains. However, $55K remains a key resistance before the top cryptocurrency can move into the sub-$60K price zone and retest its all-time-high (ATH) above $64K. Key on-chain metrics indicate a growing bullish sentiment in the market as the Gree and Fear Index reached a value of 76, representing extreme greed among traders.
After a bearish September month when $BTC lost more than 20% of its valuation the Fear and Greed index has reached extreme fear, as visible from the above chart, until last week the market sentiment was more bearish than bullish. However, with the start of the new month, $BTC has not just regained most of its losses from the last month, it also managed to break the crucial $55K resistance and now looks to consolidate above it.
Bitcoin is Just a Rally Away From ATH
Bitcoin hit an ATH of $64,863 on April 14 and is currently down by 17% from the top, a gap that can be easily covered in a bullish rally by the top cryptocurrency. Market analysts believe a clear break above $55K would leave little resistance to ATH.
The $60,000 resistance. pic.twitter.com/Eueq2h8dxE
— Bitcoin (@Bitcoin) October 7, 2021
Bitcoin’s Network Value to Transactions Ratio (NVT) is on the rise indicating a bullish momentum building in favor of the top cryptocurrency. BTC’s NVT value showed bullish divergence for the first since February this year, marking an 8-month high. NVT model.
With a surge above $55K, Bitcoin’s market valuation also breached the $1 trillion mark again, and looking at the growing whale accumulation and expected final quarter, the price target of $100K for BTC are back into the picture. And if a Bitcoin ETF is indeed passed by the SEC, the five-figure price mark would become more possible.