Bitcoin Surges to $63,000: Discover the Main Factor
Bitcoin, the leading cryptocurrency by market capitalization, surged significantly, hitting $63,000 due to robust bullish momentum during the weekend. This surge marks Bitcoin’s fourth consecutive day of gains following a notable recovery from last Friday’s lows of $56,538.
In mid-March, Bitcoin reached a peak of around $74,000 driven by the demand for newly launched U.S. exchange-traded funds. Subsequently, the coin experienced a decline amidst reduced inflows and concerns regarding the sale of seized tokens and the collapse of the Mt. Gox exchange.
On July 5, Bitcoin dropped to $53,499, levels not seen since February, amid a continuous sell-off. However, after a period of consolidation, Bitcoin initiated a rebound and started climbing upwards.
From a technical standpoint, Bitcoin’s recent price upswing was supported by a significant breakout, with BTC surpassing the critical level at the 200-day Simple Moving Average (SMA). This breakout further empowered the bulls, propelling the price upwards. According to crypto analyst Ali Martinez, a definitive breakthrough above this level was essential for sustaining Bitcoin’s bullish momentum.
Ali previously forecasted that a successful breach above the $59,200 resistance level, aligned with the daily SMA 200, could drive BTC to $63,800. At the time of reporting, BTC had surged by 4.12% in the past 24 hours to $62,745, reaching intraday highs of $63,293.
Bitcoin’s price surge is part of a broader uptrend in the cryptocurrency market, with other major cryptocurrencies also witnessing substantial gains, fostering a positive market sentiment.
According to CoinGlass data, $125 million has been liquidated in the last 24 hours, with a significant portion of $101.43 million representing bearish positions from traders anticipating a decline in crypto prices. Bitcoin constituted nearly half of this amount, with BTC shorts experiencing $49.45 million in liquidations.
IntoTheBlock, an on-chain analytics firm, highlighted that while Bitcoin has reclaimed the $62,000 support level, strong resistance persists above it. Nevertheless, a sufficient bullish push can mitigate selling pressure, indicating a potentially favorable outlook for Bitcoin’s price trajectory.
