TL;DR
- Bitcoin rose to intraday highs of $63,293, marking its fourth consecutive day of gains.
- A major technical break above the 200-day SMA fueled the recent price surge.
- The rally is part of a broader recovery in the cryptocurrency market, with $49.45 million worth of Bitcoin short positions liquidated.
Bitcoin, the world’s largest cryptocurrency by market capitalization, hit $63,000 after experiencing its biggest gain in nearly two months.
This surge came after a strong bullish momentum over the weekend, which led BTC to mark its fourth consecutive day of gains.
The cryptocurrency has recovered markedly from last Friday’s lows of $56,538, indicating a positive trend after a period of consolidation.
Bitcoin’s price had hit an all-time high of around $74,000 in mid-March, driven by demand for exchange-traded funds launched in the US.
However, the coin suffered a drop due to declining inflows and concerns over seized token sales and the bankrupt Mt. Gox exchange.
This negative trend led Bitcoin to fall to lows of $53,499 on July 5, levels not seen since February, according to data from CoinMarketCap.
Since then, BTC began to regain ground, consolidating for several days before beginning a new ascent.
From a technical perspective, the recent price surge was supported by a major technical breakout, breaking above the key 200-day Simple Moving Average (SMA) level.
This technical break boosted the bulls, driving the price even higher.
According to cryptocurrency analyst Ali Martinez, a decisive break above this level was necessary to maintain BTC’s bullish momentum.
Bitcoin Market Outlook and Analysis
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 has been liquidated in the past 24 hours, of which $101.43 million is in bearish bets from traders expecting cryptocurrency prices to fall.
Bitcoin accounted for almost half of this figure, with losses of $49.45 million in short position liquidations.
Blockchain analytics firm IntoTheBlock notes that while Bitcoin has reclaimed the $62,000 support level, resistance remains strong above this level.
However, sufficient bullish momentum can prevent selling pressure.
The market seems to be in a recovery phase, and investors are keeping an eye on Bitcoin’s next moves.
Bitcoin’s recovery is significant, not only because of the price level reached, but also because of what it represents in terms of market confidence.
Traders and analysts will be closely watching to see if BTC can maintain this momentum and break above new resistances in the coming weeks.
With the volatility characteristic of cryptocurrencies, the market could continue to present opportunities for both bullish and bearish investors.
The technical break above the 200-day SMA has been a key factor in its recent rise, and the broader recovery in the cryptocurrency market has contributed to this positive sentiment.
The focus now turns to whether this momentum can sustain and take Bitcoin to new highs.
