Blockchain
Why did the price of Bitcoin (BTC) rise above $60,000?
Cryptocurrency Bulls, You Need to Take Note! The cryptocurrency market, led by Bitcoin (BTC)has seen a nearly 5% increase in the past 24 hours, reaching around $2.4 trillion early Monday during the Asian session. Bitcoin closed last week on a bullish note after being mired in bearish sentiment for the previous four weeks.
At the time of writing, the flagship cryptocurrency is trading at around $62,600. Ethereum (ETH) It also led the altcoin market in an uptrend.
After a month of bearish blues, has the bullish breakout we’ve been waiting for finally arrived? Dig deeper to find out what’s fueling the rally and where Bitcoin (and the rest of the cryptocurrency market) could be headed!
The main reasons for the Bitcoin price surge
Increased demand for whales
Bitcoin Price received a much-needed bullish boost from whale traders last week. With the German government ending its Bitcoin sales over the weekend, on-chain data revealed that whale traders were accumulating more coins.
On-chain data specifically showed that Bitcoin whales added 71,000 coins last week, despite short-term traders capitulating. Additionally, US-based spot Bitcoin ETFs saw over $1 billion in cash inflows last week, primarily from BlackRock’s IBIT and Fidelity’s FBTC.
Fear of Cryptocurrency Capitulation Ebbs
As the price of Bitcoin surged above $62,000 this morning, the fear and greed index also rebounded to over 50 percent (neutral) from around 25 percent (extreme fear) last week.
Since the cryptocurrency market was already in a macro bullish trend, the recent capitulation was seen as a buying opportunity, in preparation for a parabolic rally.
Economic data
Bitcoin’s price surge has renewed its correlation with the bullish stock market. Last week’s economic data from the United States hinted at a possible interest rate cut by the end of the year if inflation continues to decline.
Meanwhile, the upcoming final approval of spot Ether ETFs in the US will be a big win for bullish sentiment.
Technical Outlook: Bitcoin’s Next Target
Bitcoin’s bounce above the crucial $61,000 support/resistance level suggests it is poised for further gains, similar to digital gold. From a technical perspective, Bitcoin targets $70,000 if it consistently closes above the daily descending broadening wedge in the coming weeks.
However, if a capitulation occurs, Bitcoin price could drop to $52,000 to consolidate before embarking on a euphoric recovery.
Read also: Bitcoin Bulls Ride Trump Wave; Price Targets $70K Levels
Is the Crypto Market Headed for Another Parabolic Rally? Let Us Know Your Predictions!