Bitcoin Price Breakout, Crypto Market Recovery Confirmed
The crypto market saw an increase in trading volume during US hours as the Bitcoin (BTC) price broke above the descending trend line. Is the crypto market recovery confirmed or a false breakout?
Bitcoin Price Breakdown
Bitcoin price rose more than 2% in an hour as investors poured money into Bitcoin after chart patterns confirmed a break above the trend line. BTC price rose from $60,630 to $62,585 in a few hours on Thursday after the 3-day descending trend line was broken in a lower time frame.
The Bollinger bands indicator shows an increase in trading volume as the bands widen. BTC price also rose above the 20-SMA, confirming a strong recovery in prices.
On the lower timeframe, the Ichimoku Cloud indicates a trend reversal for bullish momentum. Additionally, key support was broken to confirm the recovery. Traders need to look for confirmation on a higher timeframe for a major rise in BTC price.
Bitcoin price has moved above the cloud and the cloud is also green, which indicates that BTC price will rise in the coming days. Bitcoin needs to rise above $66,000 and $70,000 to reach a new all-time high. Moreover, the rise in Bitcoin prices triggered a broader market recovery, with ETH, SOL, XRP, TON, DOGE, ADA, SHIB, and other altcoins also rising higher within a few hours.
Whales Bought the Bottom
This could be the last drop in BTC price as whales accumulated around $950 million BTC the day before. Whales often buy the bottom and start a rally in crypto.
parofix reported that wallets containing 1k to 10k BTC accumulated 15,000 BTC worth almost $941 million; This shows confidence in BTC whales despite the price falling to $62,000. Whale accumulation is seen as a key factor in maintaining a bullish outlook for a crypto or the entire crypto market.
Meanwhile, US dollar index (DXY) fell to 105.25 today after rising for three consecutive days. Moreover, US 10-year Treasury yield (US10Y) fell today too. While Bitcoin moved inversely to DXY and Treasury yields, the decline helped Bitcoin rise. Investors are waiting for statements from Fed officials regarding the course of the market and the economic outlook.
Short Positions Are Liquidated
CoinGlass data shows that more than 61 thousand investors were liquidated in the last 24 hours. The largest liquidation order occurred on crypto exchange Binance when someone bought and sold $965.08K worth of BTCUSDT. This suggests that investors remain cautious in the face of large trading volume declines.
More than $142 million has been liquidated in the crypto market in the last 24 hours, and there has been an increase in short position liquidations in the last 4 hours.
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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