Ethereum
Why the price of Bitcoin is increasing today
The crypto market has seen an influx of trading volume during US hours as the price of Bitcoin (BTC) breaks above a descending trendline. Is the recovery of the cryptocurrency market confirmed or is it a false breakout?
Bitcoin Price Breakdown
Bitcoin price recorded a rise of more than 2% in an hour as traders reinvested money into Bitcoin after chart patterns confirmed a breakout above the trendline. BTC Price rebounded from $60,630 to $62,585 in a matter of hours on Thursday after a 3-day descending trendline was broken in a shorter time frame.
The Bollinger Bands indicator shows an increase in trading volume as the bands widen. BTC price also exceeds 20-SMA, confirming a strong price rebound.
In the lower time frame, Ichimoku Cloud indicates that the trend has reversed to bullish momentum. Additionally, base support is broken to confirm a recovery. Traders should look for confirmation in a longer time frame for a massive rise in BTC price.
Bitcoin price has moved above the cloud and the cloud is also green, indicating bullish BTC price action in the coming days. Bitcoin needs to surpass $66,000 and $70,000 to reach a new all-time high. Additionally, the Bitcoin price breakout triggered a broader market rally as ETH, SOL, XRP, TON, DOGE, ADA, SHIB and other altcoins also surged within hours.
The whales bought the dip
This could be the final drop in BTC price as whales accumulated almost $950 million in BTC a day ago. Whales usually buy the bottom and start a rally in a crypto.
CoinGape reported that wallets holding 1,000 to 10,000 BTC have accumulated over 15,000 BTC worth nearly $941 million, indicating confidence in BTC whales despite the price dropping to $62,000. Whale accumulation is considered a major factor in maintaining a bullish outlook for a crypto market or the entire crypto market.
Meanwhile, the US Dollar Index (DXY) fell to 105.25 today after climbing for three consecutive days. Additionally, the 10-year US Treasury yield (10 American years) also dropped today. As Bitcoin moves opposite to DXY and Treasury yields, the decline has contributed to Bitcoin’s rise. Traders are awaiting further comments from Fed officials for guidance on market direction and the economic outlook.
Short positions are liquidated
Data from CoinGlass shows that more than 61,000 traders were liquidated in the last 24 hours. The largest liquidation order occurred on crypto exchange Binance, as someone traded BTCUSDT worth $965.08k. This indicates that traders remain cautious in the face of a massive drop in trading volume.
Over $142 million has been liquidated in the crypto market in the last 24 hours, with an increase in short position liquidations in the last 4 hours.
Read also: