Bitcoin's price surge crosses $56K with a 9% increase, backed by a 200% rise in trading volume. Despite indicators hinting at bullish momentum, resistance near $61K and a need to surpass $57K to sustain the rally.

Bitcoin [BTC] surprised investors with a strong overnight performance, crossing the $56K threshold.

As per CoinMarketCap, Bitcoin's value surged by almost 9% in the last 24 hours alone.

Earlier, AMBCrypto highlighted the potential for BTC's price volatility, as a key indicator reached levels historically associated with bull rallies.

However, after surpassing $56K, the coin's price retreated below that level.

At the time of this writing, BTC is trading at $55,798.83 with a market capitalization exceeding $1.1 trillion.

The price surge was supported by a more than 200% increase in BTC's trading volume, laying the groundwork for the bull rally.

Despite the substantial price increase, buying pressure on the coin remains high. Notably, crypto analyst Axel pointed out that Bitcoin's weekly outflow remained strongly positive, a trend observed throughout the past year.

AMBCrypto then scrutinized BTC's on-chain metrics to assess whether bullish sentiments would endure.

According to CryptoQuant, BTC's exchange reserve is decreasing, indicating low selling pressure at present.

Additionally, the Miners' Position Index (MPI) indicates that Bitcoin miners are selling holdings within a moderate range compared to their one-year average.

Furthermore, the overall buying sentiment appears dominant, with the king coin's Coinbase premium in the green, signifying active buying by U.S. investors.

If Bitcoin maintains its bullish momentum, investors may witness the coin's price reaching higher levels, with the $60K mark as the next target.

To assess potential roadblocks, AMBCrypto examined BTC's liquidation heatmap.

The analysis indicates an optimistic outlook for BTC, as not much BTC is projected to be liquidated before the $60K mark. If the upward price action continues, the resistance BTC might encounter is around $61K.

However, BTC needs to surpass $57K to sustain its bull rally.

Next, AMBCrypto delved into Bitcoin's daily chart, revealing a bullish crossover in the MACD, suggesting a potential further price rally.

However, other indicators present a bearish outlook. For instance, the Relative Strength Index (RSI) is in the overbought zone.

In addition, BTC's price touched the upper limit of the Bollinger bands, indicating a potential end to the current bull rally.