Bitcoin
Led by Bitcoin, Why Is the Crypto Market Hot Today?
- Crypto markets are in the green once again thanks to factors like the CME, the US economy and long-term holders.
- Bitcoin bulls are facing the stress of pulling prices back to the immediate $68,000 support level.
The global cryptocurrency market capitalization has seen an increase of 1.8% in the last twenty-four hours, which can be seen as a modest recovery since the start of the weekend.
At this time yesterday, Bitcoin [BTC] I could barely hold on to $60,000. At press time, it was worth $63,111, up 4% on the daily chart. But is there any particular reason for this tiny increase? And will it hold up?
Why Bitcoin is on the rise
Examining data from Coinglass, Bitcoin is the most liquidated asset in the last day. More than US$36 million has already been lost, mainly from Binance [BNB].
Overall, the data suggests that traders are actively responding to price changes with corresponding changes in their market positions, indicating a market that is highly sensitive to both external influences and changes in internal sentiment.
Source: Coinglass
Yet. Bitcoin is in the green and rising. Looking at the reasons for the abrupt resilience, Coinglass data it also tells us that the amount of open interest on the Bitcoin CME increased by more than 3% in twenty-four hours.
Furthermore, spot netflow recorded almost US$140 million in the same period.
Source: Coinglass
Another reason why Bitcoin is holding steady is the US economic data released on May 14.
Following the negative pattern that Jerome Powell established this year, interest rate decisions have proven to be bullish for Bitcoin as rate cuts are not coming anytime soon.
Meanwhile, savvy Bitcoin holders are echoing the vibe of the 2021 bull market, as suggested by some on the network data.
Currently, long-term holders (LTHs) are increasing their BTC holdings after being sold earlier this year.
Data suggests that, similar to mid-2021, these long-term holders are trying to acquire a larger share of the BTC supply.
They see low Bitcoin prices as an opportunity to buy more coins at a bargain, then sell them when market excitement increases.
A pattern can be traced from 2018 and 2021, showing a recurring cycle where long-term holders buy during market dips and sell during rallies.
Despite these cycles, there is a notable and persistent trend in which an increasing portion of Bitcoin is being held by long-term holders.
Current position of Bitcoin
AMBCrypto’s dissection of TradingView data for the BTC/USDt pair reveals a strong resistance level around the $68,000 mark, which BTC has tested several times over the past month without a sustained advance.
On the other hand, a clear support level is evident near the $60,000 level, below which, if Bitcoin declines, further corrections to $55,000 and beyond could be witnessed.
The frequent and relatively large price swings over short periods (as seen in the candlestick sizes) highlight the ongoing volatility in the Bitcoin market.
This pattern suggests a trader’s market, where short-term gains can be captured based on quick movements.
Source: TradingView
To read Bitcoins [BTC] Price prediction 2024-25
From the latest data, the price is experiencing another pullback towards the ascending support level.
This could be an indication of another potential buying opportunity if the pattern holds, as previous cases suggest. In short, the bears are in control.