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Key Reason Why Bitcoin Just Hit $63,000: Details

Published 15/07/2024, 11:32
© Reuters Key Reason Why Bitcoin Just Hit $63,000: Details
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U.Today - Bitcoin, the first and largest cryptocurrency by market capitalization, rose the most in nearly two months, reaching $63,000 following strong bullish momentum over the weekend. Bitcoin is set to mark its fourth consecutive day of gains after an extended rebound from last Friday's lows of $56,538.

Bitcoin reached a record high of about $74,000 in mid-March, fueled by demand for launched U.S. exchange-traded funds. The coin then fell back amid decreasing inflows and concerns over sales of seized tokens and the bankrupt Mt. Gox exchange.

Bitcoin subsequently dipped to lows of $53,499 on July 5, levels last seen in February, after a persistent sell-off. After days of consolidation, Bitcoin picked up a rebound and started rising.

From a technical perspective, Bitcoin's recent price increase has been aided by a major breakout, with BTC surpassing the key level at the 200-day Simple Moving Average (SMA).

This technical breakout boosted bulls further, propelling the price upward. According to crypto analyst Ali Martinez, a decisive breakout past this level was necessary for Bitcoin's sustained bullish momentum.

In an earlier tweet, Ali predicted that a successful break above the $59,200 resistance level that coincided with the daily SMA 200 could propel BTC to $63,800.

At the time of writing, BTC was up 4.12% in the last 24 hours to $62,745 after hitting intraday highs of $63,293.

Crypto market rallies

Bitcoin's price jump is part of a broader rally on the cryptocurrency market. Other major cryptocurrencies have also seen substantial gains, contributing to bullish sentiment.

According to CoinGlass data, $125 million worth have been liquidated in the last 24 hours, with a larger chunk of this, $101.43 million, representing bearish bets from traders hoping for crypto prices to go lower.

Bitcoin accounted for nearly half of this figure, with BTC shorts losing $49.45 million in liquidations.

According to on-chain analytics firm IntoTheBlock, while Bitcoin has reclaimed the $62,000 support level, resistance remains strong above it; however, enough bullish momentum can prevent selling pressure.

This content was originally published on U.Today

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