Bitcoin
Why did the price of Bitcoin (BTC) rise above $60,000?
The cryptocurrency market, led by Bitcoin Bitcoin (BTC) surged nearly 5 percent over the past 24 hours to hover around $2.4 trillion on Monday during the early Asian session. Bitcoin’s price closed on a bullish outlook last week after being stuck in a bearish sentiment for the previous four weeks.
The major coin had appreciated by around 5% in the past 24 hours, trading at around $62,600 at the time of writing. Ethereum (ETH) led the altcoin industry in an uptrend.
Top Reasons Why Bitcoin Price Soared
Increased demand for whales
Bitcoin Price received a much-needed bullish boost from whale traders last week. As the German government concluded its Bitcoin sales over the weekend, on-chain data shows that whale traders were busy accumulating more coins.
Specifically, on-chain data shows that Bitcoin whales added 71,000 coins last week despite short-term traders capitulating. Additionally, U.S.-based Bitcoin spot ETFs saw over $1 billion in inflows last week, led by BlackRock’s IBIT and Fidelity’s FBTC.
Cryptocurrency capitulation fears on the decline
As Bitcoin’s price surged above $62,000 earlier today, the fear and greed index also rebounded above 50 percent neutral from around 25 percent extreme fear last week. With the cryptocurrency market already in a bullish macro trend, the recent capitulation was seen as an opportunity to buy more crypto assets in preparation for the parabolic rally ahead.
Overall optimistic outlook
Bitcoin’s price action has led the crypto industry to regain its correlation with the stock market, which has been bullish recently. Last week, U.S. economic data signaled a possible interest rate cut later this year if inflation continues to decline.
Meanwhile, the upcoming final approval of Ether spot ETFs in the United States will be a big win for bullish sentiment.
Technical analysis
After Bitcoin price rebounded above the crucial support/resistance level around $61k, it is evident that the flagship coin is a digital gold awaiting further upside. From a technical standpoint, Bitcoin price is targeting $70k if it consistently closes above the daily descending broadening wedge in the coming weeks.
Otherwise, a possible capitulation could still take the price of Bitcoin to $52,000, in a consolidation before the euphoric rally begins.
Read too: Bitcoin Bulls Ride Trump Wave; Price Eyes $70,000 Levels