As a seasoned researcher with over a decade of experience in financial markets, I’ve seen my fair share of market fluctuations and trends. The recent surge in Bitcoin’s price has certainly piqued my interest, especially given its correlation with the S&P 500 rally.
On Thursday, the price of Bitcoin experienced a significant increase of approximately 15%, marking its most substantial one-day jump since February. Prior to this rise, Bitcoin was undergoing intense selling due to several factors. These included apprehension about escalating interest rates, concerns over a potential US recession, and heightened geopolitical stresses in Europe and Western Asia.
Bitcoin Price Today As Whales Threaten Rally
As a researcher studying the cryptocurrency market, I observed that on Friday during the American session, the price of Bitcoin surpassed $60,000 and peaked at $62,755. This surge followed a breakthrough on Thursday, coinciding with the upward trend of the S&P 500 index from $5,200 to $5,326 in the stock market. The escalation in Bitcoin’s price has been met with enthusiasm by investors, considering the significant drop witnessed on Monday.
Looking at the short-term holding patterns of Bitcoin’s whale investors suggests that the BTC price increase might face obstacles around the $64,000 to $65,000 unrealized profit range. According to the short-term versus long-term whale metric from CryptoQuant, this zone could act as a potential support or resistance point.
If Bitcoin’s price surpasses its current range, it may trigger an upward trend targeting around $70,000. Yet, if the bulls can’t break through the resistance, there might be pressure weighing down on Bitcoin. Interestingly, a long-term holder has not yet cashed out their profits at approximately $22,000. As demand for Bitcoin increases, this level could escalate further and potentially spark a substantial upward surge.
Adopting a bearish viewpoint, the IOMAP (Intelligent Order Book Map and Analytics) model from IntoTheBlock indicates potential resistance in the price range between $63,583 and $64,395. Approximately 1.63 million investors bought around 927.3 Bitcoin within this range. The red circles indicate possible selling pressure, with the strongest coinciding with the short-term Bitcoin whales’ average purchase price zone.
As an analyst examining Bitcoin’s short-term price action today, I foresee a potential rejection from the current range could trigger another wave of selling, causing Bitcoin to plummet towards its strongest support around $54,520 and $55,657. This prediction is backed by a substantial volume of approximately 643.3k BTC.
BTC Price Edges Closer To $60,000
At the time of examination, Bitcoin’s price remained steady around $60,500. On Thursday, it faced resistance above $62,000, and factors such as a 20-day Exponential Moving Average (EMA) that capped growth at $61,490, along with a “death cross” in the same daily range, indicate that the likelihood of Bitcoin reaching $70,000 is diminishing.
If the predicted Bitcoin price trend indicates that the 200-day Exponential Moving Average (EMA) support at $59,446 gets breached, traders might choose to sell Bitcoin short. This action could potentially cause a downward surge in Bitcoin’s value, exceeding the current IOMAP (In/Out of the Money Around Price) support levels.
Observing the surge in Bitcoin short position closures on Coinglass might usually propel Bitcoin’s current price upward. This is due to the fact that as short sellers are compelled to repurchase their positions to offset their losses, this scenario tends to generate a positive momentum, driving the Bitcoin price higher.
As a crypto investor, I’ve noticed that Bitcoin short position liquidations, amounting to a significant $72.6 million, have more than tripled compared to long position liquidations, which stood at $17.4 million. This imbalance, coupled with the surge in open interest, seems to be setting the stage for a potential rally aiming towards the $70,000 mark.
Read More
- SOL PREDICTION. SOL cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- ENA PREDICTION. ENA cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- USD PHP PREDICTION
- USD ZAR PREDICTION
- USD COP PREDICTION
- Red Dead Redemption: Undead Nightmare – Where To Find Sasquatch
- Top gainers and losers
2024-08-09 19:44