Bitcoin Price Blasts Past $63,000: Top 3 Reasons
01 Julho 2024 - 5:10AM
NEWSBTC
Over this past weekend, Bitcoin (BTC) experienced a significant
rally, pushing its price above $63,000—an increase of 5.6% since
hitting a low below $60,000 on Friday. This unexpected surge
occurred despite a lack of major news triggers, leading to
speculations and analyses concerning the underlying causes. Here’s
a deep dive into three key factors that might explain this
weekend’s price action. #1 Mysterious Bitcoin Whale Activity
According to DeFi^2 (@DefiSquared), the number one ranked trader on
Bybit and a leading wallet on DeBank, a mysterious “whale” has been
active in the Binance perpetual futures market. DeFi^2 noted
significant buying activity from this entity, stating, “Since the
local BTC lows on Friday, almost the entire bounce this weekend is
from a single entity on Binance Perps that has hammered over $450
million in buys in 500 BTC blocks at a time during the lowest
liquidity hours of the market.” Related Reading: Bitcoin Records
Surge In Retail Investors – Is A Price Rebound On? DeFi^2’s
analysis sparked speculations about the whale’s potential
strategies, especially considering the impending Mt. Gox
distribution, which could further influence Bitcoin’s liquidity and
price stability. He elaborated, “Curious what the endgame is right
before the start of Mt Gox distribution. With a position of this
size, in order to exit they’ll either need to run the market high
enough to cause a short squeeze, or end up becoming a massive
cascade risk if the market goes against them.” #2 Open Interest
Build Up Crypto trader Daan Crypto Trades (@DaanCrypto) provided
insights into how the futures market contributed to Bitcoin’s price
movements. His focus was on the relationship between open interest
and market price, a critical indicator of market sentiment and
potential future volatility. “During this run up, we’ve mostly seen
Open Interest rise with a few relatively small short squeezes and
some long profit taking in between. I think there’s a lot of
underwater shorts from the ~$60K region that should get squeezed
out if price were to keep grinding higher. That $65K region is
still a big area to watch out for,” Daan wrote. Related Reading:
Bitcoin Miner Selling Cools Off – Is This The Breakout Moment?
Interestingly, open interest on Bitcoin increased from $30.97
billion on Saturday to $32.21 billion by Monday, based on data from
Coinglass. Despite this rise in open interest, the weekend did not
see substantial short squeezes. The liquidation of only $35 million
in BTC shorts during this period was relatively modest compared to
past events, such as on May 20 when the price surge from $66,000 to
$71,500 resulted in $84.2 million in short liquidations. #3
Technical Breakout Another contributing factor was likely a
technical breakout for Bitcoin, which shifted the market momentum.
Popular crypto analyst CRG (@MacroCRG) described the weekend’s
price movement as a “beauty of a breakout.” He highlighted that
both funding rates and the perpetual futures basis remained flat,
which usually precedes a strong market move. “That’s a beauty of a
breakout. Funding + perps basis flat. Weekly close in 1H + weekly
candle is a ginormous pinbar with an 8% wick (high probability
reversal candle). Full send,” he stated. The technical analysis
shows Bitcoin breaking a descending trendline that has been in
place since it peaked at about $72,000 in early June. The break
through this trendline on the 4-hour Binance chart, as noted by
CRG, signals a potential reversal from the recent bearish trend.
Moreover, the BTC weekly close presents a significant bullish
signal—a large pinbar candle with an 8% wick—indicating potential
for upward movement. At press time, BTC traded at $63,232. Featured
image created with DALL·E, chart from TradingView.com
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