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Led by Bitcoin, why is the cryptocurrency market growing today?
- Cryptocurrency markets are once again in the black, thanks to factors such as the CME, the US economy and long-term holders.
- Bitcoin bulls are facing the stress of bringing prices back to the immediate support level of $68,000.
The global cryptocurrency market capitalization has seen a 1.8% increase over the past twenty-four hours, marking what can be seen as a modest recovery since the start of the weekend.
At this time yesterday, Bitcoin [BTC] he barely made it to $60,000. At the time of writing, it was worth $63,111, up 4% on the daily chart. But is there any particular reason for this small surge? And will it resist?
Why Bitcoin is rising
Examining Coinglass data, Bitcoin is the most liquidated asset in the last day. He saw over $36 million disappear, mostly from Binance [BNB].
Overall, the data suggests that traders are actively responding to price changes with corresponding changes in their market positions, indicating a market that is highly sensitive to both external influences and changes in internal sentiment.
Source: Coinglass
Still. Bitcoin is in green and going up. Coinglass examines the reasons for the abrupt resilience data it also tells us that Bitcoin’s CME open interest increased by more than 3% in twenty-four hours.
Additionally, spot net flow recorded nearly $140 million over the same time frame.
Source: Coinglass
Another reason why Bitcoin is holding up is the US economic data that will be released on May 14th.
Following the negative pattern established by Jerome Powell this year, interest rate decisions have proven bullish for Bitcoin as rate cuts are not coming anytime soon.
Meanwhile, experienced Bitcoin holders are echoing the bull market vibe of 2021, as suggested by some on-chain data.
Currently, long-term (LTH) holders are increasing their BTC holdings after selling earlier this year.
The data suggests that, similar to mid-2021, these long-term holders are looking to capture a larger share of BTC supply.
They see low Bitcoin prices as an opportunity to buy more coins at a cheap price, then sell them when market excitement increases.
A pattern can be traced from 2018 to 2021, showing a recurring cycle where long-term holders buy during market lows and sell during highs.
Despite these cycles, there is a clear and persistent trend that an increasingly preponderant share of Bitcoin is held by long-term holders.
The current situation of Bitcoin
AMBCrypto’s analysis of TradingView data for the BTC/USDt pair reveals a strong resistance level around the $68,000 mark, which BTC has tested multiple times over the past month without achieving a sustained breakthrough.
On the contrary, a clear support level is evident near the $60,000 level, below which, if Bitcoin falls, further corrections to $55,000 and above could occur.
Frequent and relatively large price swings over short periods (as seen by the size of the candles) highlight the ongoing volatility in the Bitcoin market.
This pattern suggests a trader’s market, where short-term gains can be made based on rapid movements.
Source: TradingView
Light That of Bitcoin [BTC] Price forecast 2024-25
As of the latest data, the price is experiencing another pullback towards the upside support level.
This could be indicative of another potential buying opportunity if the pattern holds as suggested by the above examples. All in all, the bears have a lot of control.