Bitcoin
The Main Reason Why Bitcoin Just Hit $63,000: U.Today Details
U.Today – , the first and largest cryptocurrency by market cap, has seen its biggest rally in nearly two months, hitting $63,000 following a strong bullish momentum over the weekend. Bitcoin is set to post its fourth consecutive day of gains following an extended recovery from Friday’s lows of $56,538.
Bitcoin hit a record high of around $74,000 in mid-March, fueled by demand for exchange-traded funds launched in the U.S. The currency then fell amid dwindling inflows and concerns over sales of seized tokens and the collapsed Mt. Gox exchange.
Bitcoin subsequently fell to lows of $53,499 on July 5, levels last seen in February, following a persistent sell-off. After days of consolidation, Bitcoin recovered and began to rally.
From a technical perspective, Bitcoin’s recent price surge was aided by a major breakout, with BTC breaking above the key level at the 200-day Simple Moving Average (SMA).
This technical breakout further fueled the bulls, propelling the price higher. According to crypto analyst Ali Martinez, a decisive breakout beyond this level was necessary for Bitcoin’s sustained bullish momentum.
In a previous tweet, Ali predicted that a successful break above the $59,200 resistance level, which coincides with the 200 daily SMA, could propel BTC to $63,800.
At the time of writing, BTC is up 4.12% in the past 24 hours to $62,745 after hitting intraday highs of $63,293.
Cryptocurrency market rallies
Bitcoin’s price jump is part of a broader rally in the cryptocurrency market. Other major cryptocurrencies have also seen substantial gains, contributing to the bullish sentiment.
According to data from CoinGlass, $125 million was liquidated in the past 24 hours, with a larger portion of that, $101.43 million, representing bearish bets from traders expecting cryptocurrency prices to fall.
Bitcoin accounted for nearly half of that, with BTC shorts losing $49.45 million in liquidations.
According to on-chain analytics firm IntoTheBlock, although Bitcoin has reclaimed the $62,000 support level, resistance remains strong above it; however, sufficient bullish momentum could stave off selling pressure.