As a researcher with a background in financial markets and cryptocurrencies, I’m excited to see Bitcoin price surpass the $70,000 level once again. The sudden upside move is reminiscent of last year’s Memorial Day rally, which brought significant volatility to the market. However, it’s essential to keep an eye on upcoming events that could potentially impact the positive sentiment, such as US PCE inflation data and crypto market expiry on May 31.
The price of Bitcoin has recovered and surpassed the $70,000 mark once more. This surge may be attributed to a Memorial Day rally instigated by bulls, reminiscent of the one seen in 2021. Noteworthy buying activity from both spot and derivatives traders in American trading hours, coupled with substantial volumes, has resulted in this noticeable uptrend. Is it plausible that this upward trend will pave the way for a new record high of $75,000?
Bitcoin Price Surpasses $70,000
Last week, according to CoinGape Media’s prediction, Bitcoin’s price reached a new milestone by exceeding $70,000 once more. The Memorial Day holiday could be the reason behind this sudden increase in Bitcoin’s value. However, if this rally persists, we might witness a significant surge in BTC prices. Alternatively, Bitcoin may consolidate given the upcoming major events scheduled for this week that could impact its price behavior. In 2021, Bitcoin experienced substantial volatility around Memorial Day.
As a market analyst, I observe that Bitcoin has managed to stay above the crucial support level of $66,000. However, there are potential challenges that could negatively impact the current market sentiment. Among these factors are the upcoming US PCE inflation data and the crypto market expiry on May 31. These events might cause a shift in investor confidence, potentially leading to a decrease in buying pressure.
Currently, the price of Bitcoin (BTC) is undergoing a notable surge in its lower timeframes. In particular, within the past hour, Bitcoin has witnessed substantial trading activity as evidenced by the widening Bollinger bands. Additionally, the Bollinger bands indicator suggests that Bitcoin’s price has become overbought following this sudden increase and may correct itself for another price rise.
BTC Shorts Liquidated
In the past 24 hours, BTC recorded short liquidations totaling $23 million. An astounding $11 million worth of these occurred within an hour, according to Coinglass data. The largest single liquidation order, equivalent to $2.07 million in BTC traded against USDT, took place on the crypto exchange OKX.
Although this liquidation may not be the biggest one, a number of significant events have made the recent price surge particularly important. For instance, the House passed the FIT21 bill for crypto regulation, which could impact the market. Additionally, an anti-CBDC bill was introduced, preventing the Federal Reserve from issuing Central Bank Digital Currencies. Furthermore, the approval of spot Ether and Bitcoin ETFs, along with increased buying after earlier outflows, have all contributed to the upward trend.
On-Chain Insights
An on-chart analysis conducted by CryptoQuant’s verified expert revealed a chart illustrating the realized price metric for both recent and established Bitcoin whale groups. This graph demonstrates the percentage of Bitcoin supply currently generating a profit for these groups. The analyst emphasized that the current realized price for new Bitcoin whales is now a significant benchmark for Bitcoin’s short-term value.
In simpler terms, the cost at which old large-scale Bitcoin investors entered the market has historically served as a strong foundation for Bitcoin’s price during various market phases. On the flip side, the cost basis of recent large-scale investors is currently playing a key role in underpinning the ongoing bullish trend toward Bitcoin’s all-time high of $74K.
In the past 24 hours, Bitcoin’s price surged by approximately 3%, reaching a current value of around $70,442. The lowest and highest prices within this timeframe were recorded at $68,183 and $70,541 respectively. Notably, there has been a substantial uptick in trading activity, leading to a significant 58% increase in volume, underscoring heightened investor enthusiasm.
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2024-05-27 19:50