Bitcoin has kicked off the third quarter of 2024 with a notable surge, driven by bullish sentiment as it aims to reclaim previous highs. The cryptocurrency saw its price strength return, holding the $60,000 support level. At the time of writing, Bitcoin experienced a 4% rise in the past 24 hours, though it faces challenges to sustain the bull market.
What’s Driving Bitcoin’s Rally?
Towards the end of June, Bitcoin achieved a promising close above $62,500 weekly, monthly, and quarterly. Data from TradingView revealed that the BTC/USD pair hit local highs of $63,724 on centralized exchanges before experiencing a slight consolidation.
CoinGlass data indicated a 7% loss in June, with Bitcoin ending the second quarter with a 12% decline. Market participants remain cautious as they anticipate potential improvements in sentiment.
How Sustainable Is This Growth?
Keith Alan, co-founder of Material Indicators, remarked that while Bitcoin has risen nicely from lower levels, it currently lacks the momentum to close above the 21-Week Moving Average. This indicates that the bulls have more work ahead to maintain the upward trajectory.
Market Insights
– Bitcoin’s recent surge is primarily driven by bullish sentiment and strong support at the $60,000 level.
– Despite the rise, Bitcoin ended Q2 2024 with a 12% decline, highlighting volatility.
– The gap in CME Group Bitcoin futures suggests potential market movements, though its significance remains debated.
– Order book liquidity indicates $64,100 as a critical resistance area.
Daan Crypto Trades, a well-known investor, pointed out a notable gap in CME Group Bitcoin futures, created by the weekend’s price rise. This gap, starting at $60,400, is the largest in recent memory. According to Daan, while the gap could close, the current price distance suggests it might not be an immediate concern. Historically, such gaps have either remained open or closed after an extended period.
Order book liquidity analysis shows that Bitcoin has encountered several liquidity hunts up to July, marking $64,100 as a crucial area of interest.
In conclusion, while Bitcoin’s significant surge marks a robust start to Q3 2024, the market remains cautious with key resistance levels and potential volatility ahead. Investors are advised to monitor critical support and resistance levels closely.