Bitcoin (BTC) Price Soars Over $60K – What’s Behind the Surge?
The digital currency market, spearheaded by Bitcoin (BTC), experienced a nearly 5 percent surge in the last 24 hours, reaching approximately $2.4 trillion on Monday during the early Asian trading session. Bitcoin’s value closed on a positive note last week after enduring a bearish phase for the preceding four weeks.
The leading cryptocurrency witnessed an increase of around 5 percent in the past day, trading at roughly $62,600 at the time of this update. Ethereum (ETH) stood out in the alternative coin sector with a bullish trajectory.
One of the primary factors driving the surge in Bitcoin’s price was the heightened demand from whale traders in recent days. Notably, data from on-chain sources revealed that whale traders were actively accumulating more Bitcoin following the conclusion of Bitcoin sales by the German government over the weekend.
Specifically, on-chain data indicated that Bitcoin whales added 71,000 coins to their wallets last week despite a scenario where short-term traders were capitulating. Furthermore, spot Bitcoin ETFs based in the United States saw inflows exceeding $1 billion last week, primarily led by BlackRock’s IBIT and Fidelity’s FBTC.
The apprehension surrounding potential market capitulation in the crypto sphere diminished as Bitcoin’s price surpassed $62,000 earlier today. The fear and greed index also rebounded, shifting from extreme fear (around 25 percent) last week to a neutral position above 50 percent. This rebound was interpreted as an opportunity to acquire more crypto assets in anticipation of an impending bullish rally.
Bitcoin’s price surge has also contributed to the cryptocurrency industry aligning itself with the recent bullish trend in the stock market. Economic indicators from the United States last week hinted at a probable interest rate reduction later in the year if inflation continues to ease. Additionally, the imminent final approval of spot Ether ETFs in the United States is anticipated to further bolster bullish sentiment.
From a technical perspective, Bitcoin’s price recovery above the critical support/resistance level at approximately $61,000 suggests a potential upward movement for the flagship cryptocurrency. If Bitcoin manages to consistently close above the daily descending broadening wedge in the upcoming weeks, it could target $70,000. However, a scenario of capitulation could potentially drive the price down to $52,000 for a consolidation phase before a subsequent bullish rally.
