During the early session on Monday, BTC price briefly went above USD 64,562 resistance. But, it is to be seen if BTC can stay at higher levels. Not been able to stay above 64,000 could lead to decline as well. Traders need to be cautious. Bitcoin (BTC) is poised for a potential surge to $66,000 in the coming weeks, driven by favorable on-chain metrics and bullish technical patterns. The 14-day Market-Realized Gradient and the NVT Golden Cross suggest that the cryptocurrency is gathering momentum, signaling a possible upward trajectory. As BTC currently trades at $63,903, it faces resistance at $64,562, a level that could be pivotal. Breaching this resistance could propel BTC to new highs, but failure might lead to a pullback toward $60,000. The analysis underscores the importance of monitoring these key indicators for future price movements.

Positive On-Chain Metrics Support Bitcoin’s Potential Rally

Market-Realized Gradient Indicates Fresh Capital Influx: Bitcoin's 14-day Market-Realized Gradient, currently at 1.17, is signaling an influx of new capital into the cryptocurrency. This metric, which assesses the price at which each coin last moved, suggests the potential length of an uptrend. Historically, steep declines in this gradient have led to price drops, but the current increase indicates robust capital inflow, potentially driving Bitcoin's price higher.

Historical Precedent for Price Surge: The last time Bitcoin's Market-Realized Gradient was in a similar region, the cryptocurrency's price surged to $66,805. If this pattern repeats, BTC could reach or exceed $66,000 within the next two weeks, mirroring past performance.

NVT Golden Cross Supports Bullish Outlook

NVT Golden Cross Indicates Strong Buying Zone: The Network Value to Transaction (NVT) Golden Cross metric, currently at 0.71, suggests that Bitcoin is in a prime buying zone. This metric evaluates whether a cryptocurrency's value is near its bottom or top, with readings under -1.6 indicating a bottom and values above 2.2 suggesting an overbought condition. Bitcoin's current NVT reading implies it has rebounded from the top, indicating upward pressure and potential price growth.

Continued Increase Expected to Drive Price Higher: If the NVT Golden Cross continues its upward trend, Bitcoin's price is likely to follow suit. This metric's alignment with other bullish indicators strengthens the case for a potential rally.

Key Takeaways for Investors

Monitor Key Resistance Levels: The $64,562 resistance is crucial for BTC's near-term trajectory. Breaching this could lead to significant gains, while a failure might trigger a retracement.

Watch for Continued Inflows and Technical Patterns: The 14-day Market-Realized Gradient and NVT Golden Cross metrics are pivotal indicators. Continued positive readings could confirm the bullish trend.

Consider Market Volatility: While the indicators point to a potential rally, Bitcoin's inherent volatility means that traders should remain cautious and consider possible market corrections.

Technical Patterns Signal Reversal from Downtrend

Inverse Head and Shoulders Pattern Confirms Bullish Signal: Bitcoin has formed an inverse Head and Shoulders pattern on its daily chart, a technical pattern that typically signals a reversal from a downtrend to an uptrend. This pattern consists of three key components: the first shoulder, indicating selling pressure and a rebound; the head, showing a steeper decline followed by a stronger rebound; and the second shoulder, where buying pressure negates sellers' efforts to push BTC lower.

Resistance Levels to Watch: While Bitcoin is trading above significant resistance levels, it faces another key resistance at $64,562. Breaching this level could push BTC toward $66,849, reinforcing the bullish outlook. However, failure to overcome this resistance could result in a pullback, potentially dragging the price down to $60,000.