Bitcoin‘s price surged to a daily high of $63,293, marking the most significant increase in nearly two months. This notable rise follows a weekend of upward momentum, with Bitcoin recovering from a Friday low of $56,538 and closing its fourth consecutive day with gains.
What Caused Bitcoin’s Recent Recovery?
The cryptocurrency reached an all-time high of approximately $73,777 in mid-March with the launch of US exchange-traded funds. However, Bitcoin’s price later plummeted due to reduced inflows and concerns about the sale of seized tokens from the bankrupt Mt. Gox exchange. By July 5, Bitcoin had dropped to $53,499, a level last seen in February, due to ongoing sales.
Despite these fluctuations, Bitcoin began to recover. After several days of consolidation, the cryptocurrency started to rebound. From a technical perspective, this recovery was supported by a significant breakout as Bitcoin surpassed the key level at the 200-day Simple Moving Average (SMA). This breakout boosted bullish sentiment and pushed the price upwards. Crypto analyst Ali Martinez had predicted that breaking above the $59,200 resistance level, which coincides with the daily SMA 200, could push Bitcoin to $63,800.
What Do the Latest Data Reveal?
According to the latest data, Bitcoin was trading at $62,745 with a 4.12% increase in the last 24 hours after reaching a daily high of $63,293. This rise is part of a broader rally in the cryptocurrency market, with other major cryptocurrencies also showing significant gains. CoinGlass reported that $125 million worth of positions were liquidated in the last 24 hours, with nearly half of the liquidated positions being Bitcoin short positions losing $49.45 million.
User-Usable Inferences
– Investors might consider watching the 200-day SMA as a critical level for Bitcoin’s future price movements.
– High liquidation of short positions could indicate strong market sentiment towards further price increases.
– Monitoring the $62,000 support level may be crucial for predicting Bitcoin’s resistance levels and potential selling pressure.
According to on-chain analysis firm IntoTheBlock, while Bitcoin has regained the $62,000 support level, resistance remains strong above this threshold. However, ongoing bullish momentum could prevent the formation of significant selling pressure.