Bitcoin
Bitcoin Price Breakout, Crypto Market Recovery Confirmed
The crypto market saw an influx of trading volume in US hours as the price of Bitcoin (BTC) broke above the descending trend line. Is the crypto market recovery confirmed or is it a false breakout?
Bitcoin price crash
Bitcoin price recorded a jump of more than 2% in an hour as traders poured money back into Bitcoin after chart patterns confirmed a breakout above the trendline. BTC Price it recovered from $60,630 to $62,585 in a few hours on Thursday after a 3-day descending trend line was broken on a lower time frame.
The Bollinger Bands indicator shows an increase in trading volume as the bands widen. BTC price also surpasses 20-SMA, confirming a strong recovery in prices.
Within the lower time frame, the Ichimoku Cloud indicates that the trend has reversed into bullish momentum. Additionally, base support was broken to confirm a recovery. Traders need to look for confirmation in a longer time frame for a massive rally in BTC price.
Bitcoin price has risen above the cloud and the cloud is also green, indicating bullish BTC price action in the coming days. Bitcoin needs to surpass US$66,000 and US$70,000 to reach a new all-time high. Additionally, Bitcoin’s price breakout triggered a broader market rally as ETH, SOL, XRP, TON, DOGE, ADA, SHIB and other altcoins also rose within hours.
Whales bought the dip
This could be the final drop in the price of BTC as whales accumulated almost $950 million worth of BTC a day ago. Whales typically buy the bottom and start a rally in crypto.
CoinGape reported that wallets holding 1k-10k 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 seen as an important factor in maintaining a bullish outlook for a crypto or the entire crypto market.
Meanwhile, the US Dollar Index (DXY) fell to 105.25 today after rising higher for three consecutive days. Furthermore, the 10-Year US Treasury Yield (US10A) also fell today. As Bitcoin moves in the opposite direction to DXY and Treasury yields, the decline has helped provide upside for Bitcoin. Investors await further comments from Fed officials for guidance on the market direction and 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 single settlement order happened on cryptocurrency exchange Binance when someone traded BTCUSDT valued at $965.08 thousand. This indicates that traders remain cautious amid the massive drop in trading volume.
More than $142 million has been liquidated in the crypto market in the last 24 hours, with an increase in the liquidation of short positions in the last 4 hours.
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