The sentiment in the cryptocurrency market has shifted significantly after Germany sold off all its Bitcoin (BTC) holdings. This action not only pushed overall crypto assets into positive territory but also enabled Bitcoin to break through the critical $60,000 resistance level, closing with a strong bullish candle.
Following this breakout, Bitcoin has the potential to reach the $64,000 level.
Since July 3, 2024, Bitcoin has made several attempts to surpass $60,000 but faced multiple rejections, gradually weakening this resistance. The recent breakthrough and candle closing above $60,000 suggest a possible upward movement towards $64,000 in the near future.
Another factor contributing to the positive sentiment is the consistent inflow into spot Bitcoin Exchange Traded Funds (ETFs). Despite recent market downturns, ETF traders have shown confidence by purchasing Bitcoin during dips, according to data from SpotOnChain. This sustained interest in BTC ETFs has provided additional bullish momentum.
Bitcoin Technical Analysis and Key Levels
Technical analysts have identified several bullish signals for Bitcoin. One significant indicator is Bitcoin trading above its 200-day Exponential Moving Average (EMA) on the daily chart, typically signaling optimism among traders. Furthermore, Bitcoin recently broke out of a bullish ascending triangle pattern on the 4-hour chart, reinforcing positive market sentiment.
Looking ahead, if Bitcoin reaches $64,000, it could trigger the liquidation of nearly $1.2 billion in short positions. CoinGlass data shows that long positions have outnumbered short positions over the past week, indicating strong investor confidence and suggesting expectations of further price increases.
As of the latest update, Bitcoin is trading around $62,740, marking a 4.5% increase in the past 24 hours. Open interest (OI) has also surged by 4.7%, indicating growing interest and commitment from investors and traders. Over the last 7 days, Bitcoin has seen a price surge of over 4.6%, reflecting renewed optimism in the market.
In addition to Bitcoin’s rise, other major cryptocurrencies such as Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP (XRP) have also seen significant gains. According to Coinmarketcap, ETH, SOL, ADA, and XRP have increased by 4.3%, 4%, 1.2%, and 2.3%, respectively, in the past 24 hours. This bullish momentum across Bitcoin and altcoins suggests potential further positive price actions supported by strong technical indicators and market sentiment.
Not a financial advice.